Authority raises concerns about purchase of Lancashire hygiene firm
The Competition and Markets Authority has raised concerns about the purchase of a Lancashire firm.
The CMA has said Rentokil’s purchase of Morcambe based Cannon Hygiene may lead to higher prices and lower quality for businesses who buy products and services for washrooms.
Rentokil, which trades as Initial, and Cannon are the second and third largest specialist providers of products and services used in toilets.
The firms install and maintain equipment such as air sanitisers, feminine hygiene units, nappy bins and soap dispensers.
The Competition and Markets Authority (CMA) has found that, if the merger goes ahead, the companies could face very limited competition.
Rentokil and Cannon have until 25 June to offer a solution to the CMA’s concerns, otherwise the merger will be referred for a more in-depth investigation.
Fears have been raised that jobs at Cannon’s offices in Morecambe could be under threat if the deal goes ahead. Around 100 people are currently employed by Cannon.
