On Wednesday 19 April, the European Commission announced that it had cleared, subject to certain conditions, the proposed acquisition of identity and security solutions provider Morpho, based in France, by the private equity firm, Advent International of the US. Advent International controls smart card and digital security provider Oberthur.
The Commission's investigation found that in France there are currently only three viable suppliers of payment smart cards holding the necessary national certifications and production sites to effectively supply French banks. The takeover would reduce that number to only two, which would significantly reduce competition.
This market is particularly difficult to enter, reducing the ability of suppliers not currently active in France to compete effectively.
In order to address these concerns, the parties offered to divest Morpho's French subsidiary CPS, which supplies and personalises CB-certified payment smart cards to banking customers in France.
In view of the remedies proposed, the Commission concluded that the proposed transaction, as modified, would not significantly reduce competition in the European Economic Area (EEA) or any substantial part of it, including France. The Commission's decision is conditional upon full compliance with the commitments. (Original version in French by Élodie Lamer)