The U.K.’s Competition and Markets Authority has launched an inquiry into BlackRock’s $3.2 billion cash acquisition of private markets data firm Preqin.
While the acquisition was announced in May, the CMA first requested industry comments on the merger on Dec. 4.
According to the CMA, the inquiry will look to see whether the acquisition “may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
The investigation will begin Dec. 16, under the Enterprise Act 2002 and will assess whether it meets the law’s merger provisions.
This is still a preliminary first phase of the investigation, and the CMA will announce by Feb. 12 whether its inquiry into the acquisition will need to enter into a second phase.
BlackRock declined to comment. Preqin couldn't immediately be reached for comment.
The deal is set to expand BlackRock’s Aladdin technology and data platform capabilities, and to unlock an additional $8 billion in addressable market, the $11.48 trillion manager said in May.
Data provider Preqin was founded in 2003 and is based in London. It has 16 offices around the world, covers 190,000 funds, 60,000 money managers and 30,000 private markets investors.
The CMA tracks activity to determine whether mergers may negatively impact competition in the U.K. If the watchdog believes there are competition concerns, it may decide to assess the situation through an investigation.
In the private markets space, on Dec. 3, BlackRock confirmed a deal to acquire New York-based private credit specialist HPS Investment Partners for $12 billion, and earlier this year said it would buy Global Infrastructure Partners in a $12.5 billion agreement.
