Crowdcube & Seedrs Shelve Merger During
March 25, 2021
and Seedrs have abandoned their proposed tie-up after the CMA provisionally
blocked the deal.
The Competition and Markets Authority (CMA) therefore intends to cancel its
investigation into the potential competition concerns that could be raised by
Crowdcube and Seedrs are the two largest equity crowdfunding platforms in the
UK. These types of platforms connect small and medium-sized enterprises (SMEs)
looking to raise equity investment with investors willing to provide funding in
return for a stake in the business. The proposed deal would have resulted in the
combined company having at least a 90% share of this important market.
CMA had been carrying out an in-depth Phase 2 investigation and on the 24th
March 2021 announced its provisional findings that the merger could result in UK
SMEs and investors losing out as a result of higher fees and less innovation.
The CMA’s initial view was that blocking the merger may have been the only way
of addressing the competition concerns.
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