NSF ‘expects to meet watchdog concerns’ over Provident bid

NSF said it is now in the final stage of discussions with the Competition and Markets Authority (CMA) as to when it can make its CMA filing.

The CMA said in February that Bradford-based lender Provident and rival NSF would have to hold off from integrating after any deal, to protect staff and customers while it considers the market impact of combining the subprime lenders.

In the latest announcement in what has become a bitter battle between the two sides, NSF said: “We fully expect to reach an agreement in principle on an appropriate remedy with the CMA during the initial Phase I review process."

The CMA said in February it had served the companies with an initial enforcement order, put in place to prevent the businesses from integrating after a possible merger while the watchdog decides if it needs to launch an investigation.

“If the CMA’s approval has not been received by the date on which all other conditions to the offer are satisfied, NSF will have a decision as to whether or not to waive the CMA condition and proceed to completion,” NSF said.

NSF accused Provident executives of mismanaging the company and said the Provident board has presided over "huge value destruction,plummeting profits and a repetitive cycle of reassurances followed by profit warnings".

Following NSF's announcement, Provident hit back saying NSF has still not filed its CMA submission.

A Provident spokesperson said: “The NSF announcement today provides no more capital information to our shareholders. Our capital question to NSF was on the combined group, if the merger was successful – not on NSF as a stand alone business, and this question has not been answered.

“NSF launched their hostile bid on the February 22. We note according to today’s NSF announcement that they still have not filed their CMA submission, and are only 'now in the final stage of discussions with the CMA as to when we can make our filing'.

"We do not see how this statement helps shareholders make an informed decision on the offer, as they cannot know what the CMA decision will be on NSF’s offer and proposed demerger, nor the cost and capital implications for the enlarged group of such demerger, as NSF have set the offer timetable to close on the 5th June 2019. The CMA decision cannot be made before that date.”