Experian has called off the £275 million acquisition of ClearScore following concerns raised by the Competition and Markets Authority.

The UK's competition watchdog had warned that Experian's purchase of its start-up rival could stifle product development and impact customers. 

"Experian does not believe that the CMA will approve the proposed acquisition of ClearScore on satisfactory terms, despite the dynamism and competitive nature of the market, and the customer benefits arising from the proposed transaction," listed company Experian said in a statement.

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"Experian and ClearScore's shareholders have therefore taken the decision to abandon the proposed transaction. 

"Our goal is to help more consumers with their finances by providing greater choice and convenience to them to access personal finance products at the best prices.

"Over the next year we plan to bring exciting new innovations to market which will help consumers address their needs across their financial lives, while also investing in new areas to further broaden our offering."