Competition watchdog launches phase 2 review of manufacturer acquisition

The Competition and Markets Authority (CMA) is conducting a phase 2 inquiry into Lindab International AB’s acquisition of HAS-Vent Holdings after initial Phase 1 concerns about competition.

The independent CMA group has examined how the deal affects the supply of circular ducts and fittings in England and Wales.

Northampton-headquartered Lindab UK is owned by parent group Lindab International AB a leading ventilation company in Europe, which acquired Wombourne-based HAS-Vent Holdings to merge the two businesses together.

It reviewed evidence, including internal documents from the companies and input from ventilation system installers and other suppliers.

The group’s preliminary assessment indicates that competition for these products operates at a local level.

The inquiry found that the acquisition could significantly reduce competition in the supply of circular ducts and fittings, particularly in the Nottingham and Stoke-on-Trent areas.

In these regions, the companies are major competitors with limited alternatives, potentially leading to fewer choices and higher prices for the construction sector, especially for specialist ventilation system installers.

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.”