The Competition and Markets Authority (CMA) has been carrying out
an in-depth Phase 2 inquiry into Lindab International AB's
(Lindab) purchase of HAS-Vent Holdings Limited (HAS-Vent)
after identifying competition
concerns during its initial Phase 1 inquiry. The
independent CMA group leading the Phase 2 inquiry has probed in
more detail the impact of the deal on the supply of circular
ducts and fittings in England and Wales.
The group has scrutinised a wide range of evidence, including the
parties' internal documents and evidence from installers of
ventilation systems and other suppliers of circular ducts and
fittings. Based on that evidence, the group provisionally
considers that competition for these products occurs at a local
level.
Having assessed the impact of the deal in various local areas,
the group has provisionally found that the deal has resulted, or
may be expected to result, in a substantial lessening of
competition in the supply of circular ducts and fittings in the
local areas centred around Nottingham and Stoke-on-Trent. In
these areas the parties are close competitors and face only
limited competition from alternative suppliers. This could lead
to reduced choice and higher prices in the construction sector,
particularly for specialist installers of ventilation systems in
those areas.
Kirstin Baker, Chair of the independent inquiry group, said:
We're concerned this would remove one of two main suppliers of
circular ventilation ducts and fittings in the Nottingham and
Stoke areas, risking installers of these systems paying over the
odds and then having to pass these costs onto their own
customers.
Our findings are provisional, and we now welcome responses on our
preliminary conclusions and the potential remedies in this case.
The CMA welcomes responses to its provisional findings from those
interested in this deal by Thursday 12 September. These will be
considered by the inquiry group prior to issuing its final
report, which is due by Thursday 17 October.
For more information, visit the Lindab /
HAS-Vent merger inquiry page.
Notes to editors:
-
In a Phase 2 review, the group considers whether it is more
likely than not that a deal will substantially lessen
competition – a higher threshold than Phase 1.
-
Lindab is a ventilation company headquartered in Sweden and
listed on Nasdaq Stockholm. In the UK, Lindab is primarily
active through subsidiaries Lindab Limited (Lindab UK) and
Ductmann Limited (Ductmann), which both manufacture and
distribute ventilation system products, including circular
ducts and fittings.
-
HAS-Vent is a UK company headquartered in Wombourne, also
active in the manufacture and distribution of ventilation
system products, including circular ducts and fittings, in
England and Wales.
