The UK’s Competition and Markets Authority (CMA) has announced an investigation into BlackRock’s £2.55bn acquisition of UK-based private markets data provider Preqin. The British competition watchdog is assessing whether the deal, announced in June 2024, could potentially lead to a significant lessening of competition within the UK market.
On 3 December 2024, the CMA issued an invitation for public comments seeking input on how the transaction might impact competition in the country. This marks the initial stage of the regulator’s review process under the Enterprise Act 2002. Stakeholders have until 17 December 2024 to submit their views. The CMA officially commenced its initial assessment phase on 16 December 2024. By 12 February 2025, the regulator is expected to announce whether the transaction will progress to a more detailed Phase 2 investigation. The inquiry is part of the CMA’s broader mandate to ensure mergers and acquisitions do not harm competition, restrict consumer choice, or create monopolies within UK markets.
Details of the BlackRock-Preqin deal
The acquisition will see global asset management giant BlackRock integrating Preqin’s extensive private markets data and research capabilities into its technology platform, Aladdin. Preqin, an independent data provider, delivers insights to over 200,000 users worldwide, including asset managers, insurers, pension funds, and banks. The UK-based firm’s data spans 190,000 funds, 60,000 fund managers, and 30,000 investors in the private markets sector. The company, which is projected to generate £240m in recurring revenue in 2024, has experienced an annual growth rate of approximately 20% over the past three years.
BlackRock’s aim is to leverage Preqin’s offerings to strengthen its position in the fast-growing private markets data segment, a key area for investors seeking alternatives to traditional public markets. In addition, the integration of Preqin with eFront, Aladdin’s private markets platform, is expected to unite data, research, and investment workflows to support fund managers and investors across fundraising, deal sourcing, portfolio management, accounting, and performance analysis.
The BlackRock-Preqin deal is the latest in a series of high-profile cases reviewed by the CMA. In November, the CMA assessed Google’s partnership with AI start-up Anthropic, determining that it did not warrant further investigation. This followed its abandonment of similar merger investigations into deals struck by Microsoft with AI startups Mistral and Inflection. Earlier this month, the regulator also approved the merger of telecom giants Vodafone and Three, subject to stringent conditions designed to protect consumer interests.
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