NERA’s Role in the Ingenico/Paymark Merger

The Situation

On 20 April 2018, Ingenico Group SA applied to the New Zealand Commerce Commission for clearance to acquire Paymark. Ingenico is a French company that sold payment terminals in New Zealand. Paymark’s primary business is to operate a “switch” that routes electronic payment transactions from terminals to the relevant financial institutions.

NERA's Role

NERA was engaged by counsel to the vendors of Paymark—the four main banks (ANZ, BNZ, Westpac, and ASB)—to provide expert evidence for filing with the Commission. The primary competition issue was a vertical one (i.e., whether the merger would lead to vertical foreclosure of the terminals market).  

The Result

On 2 November 2018, the Commission cleared the acquisition, on the basis that it would not substantially lessen competition in a market.