Proposed acquisition of vehicle lighting firm under investigation
The proposed acquisition of a Leeds-based vehicle lighting business is being investigated to discover if the deal will result in “substantial lessening of competition” within the UK.
Last month, German lighting group Osram agreed to acquire Ring Automotive from Rubicon Partners.
The Competition and Markets Authority (CMA), however, has now launched an investigation into the deal.
In a statement, the CMA said it “is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
With 160 employees, Ring Automotive achieved annual sales of around £40m in 2017.
When the acquisition was originally announced, George Skalski, managing director of Ring Automotive, said: “We look forward to working alongside Osram and believe that the transaction is very positive news for all of our colleagues and customers.
“The acquisition secures continued investment in the business, which will support our future growth plans and our leading-edge product innovation.“