Menu
ComCom green-lights Verifone's cancelled acquisition of NZX-listed Smartpay

ComCom green-lights Verifone's cancelled acquisition of NZX-listed Smartpay

Deal was already terminated due to the inability to gain regulatory clearance by an end of April deadline

Anna Rawlings (Commerce Commission)

Anna Rawlings (Commerce Commission)

Credit: Supplied

The Commerce Commission has belatedly granted clearance to Verifone NZ to buy the assets  and business of point of sale payments company Smartpay in New Zealand.

As the parties both supplied payment terminals to retailers for in-store electronic payments, the Commission investigated whether the proposed acquisition would have any impacts on competition, especially for small and medium sized retailers.

However, in the interim, the original deal was terminated by Verifone due to regulatory clearance not being provided by a 30 April contract deadline.

"Notwithstanding the termination of the original deal, Smartpay views the clearance as a positive outcome as it clears the way should any subsequent deal with Verifone be agreed," Smartpay told investors today.

Commission chair Anna Rawlings said this morning the Commission was satisfied that the proposed acquisition was unlikely to substantially lessen competition in any New Zealand market. 

“Although we consider that the merging parties are competitors, the presence of competing suppliers, with the ability to expand, is likely to constrain Verifone in its ability to raise prices or reduce service quality,” said Rawlings.

“Post-acquisition, Verifone would continue to face competition from terminal resellers and Windcave, while Ingenico also imposes a competitive threat.” 

The Commission also considered whether the proposed acquisition might give Verifone the ability and incentive to foreclose rival terminal suppliers by refusing to supply terminals or payment processing services.

Rawlings said that the Commission was satisfied there were sufficient alternatives for terminal suppliers and so Verifone would be unlikely to engage in such conduct. 


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags VeriFoneEftposPaymentsSpartpay

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments