OFT to probe Mortgage Brain deal
Mortgage Brain's planned acquisition of Torquay-based MortgageStream is now the focus of an Office of Fair Trading (OFT) investigation.
The Bromsgrove-based provider of point-of-sale, compliance and mortgage sourcing services agreed terms to buy MortgageStream in December. The acquisition was expected to be concluded early this year.
The regulator is considering whether the deal could result in a "relevant merger situation" under the merger provisions of the Enterprise Act 2002.
It will decide whether the deal results in "substantial lessening of competition within any market or markets in the UK for goods or services that warrants reference to the Competition Commission for investigation and report".
In March last year the government watchdog referred Mortgage Brain's planned acquisition of TrigoldCrystal to the Competition Commission.
It was claimed by the OFT the deal would have affected competition in the market leading to a decrease in innovation and quality to customers, as the companies were "by far" the two largest UK suppliers of mortgage sourcing software products.
Mortgage Brain decided to drop the planned deal.
The OFT has invited comments for the new investigation to arrive by 8 February, with a decision expected by 20 March.
