CMA takes steps towards probe into BlackRock’s acquisition of Preqin

The British competition regulator has taken its first steps towards a probe into BlackRock’s anticipated £2.55bn acquisition of financial data group Preqin.

The world’s largest asset manager revealed in July that it agreed to buy Preqin for £2.55bn in cash, as it makes its first venture into financial information provision.

Preqin, founded in 2002, provides data on the private capital industry, such as tracking private equity and hedge fund performance, for clients including banks, asset managers and investment firms.

The deal is expected to close before the end of 2024.

Despite that, the Competition and Markets Authority (CMA) revealed today that it has decided to investigate BlackRock’s deal, as it launched its invitation to comment.

The CMA said it is considering whether it may or may not be the case that this deal, if allowed, will result in the creation of a relevant merger situation under the Enterprise Act 2002.

And if so, whether the creation may be expected to result in a substantial lessening of competition within the market for goods or services.

The regulator has issued a preliminary ‘invitation to comment’ for interested parties to submit to the CMA any views on the impact that the transaction could have on competition in the UK.

The CMA has not yet launched its formal investigation into this transaction. The invitation to comment is the first part of the CMA’s information-gathering process, with 17 December 2024 provided as the deadline for any comment.

The regulator has not yet provided its phase one timetable, but will update when it formally commences its investigation.

BlackRock declined to comment.