OFT refers Latium deal
THE Office of Fair Trading has referred the takeover of Brian Kennedy’s Latium Building Products business by Epwin Holdings to the Competition Commission.
The deal, which was announced in January, has been referred over concerns that it could lead to a lack of competition for PVC roofline products such as soffit boards, fascia and cladding.
The OFT said that evidence it had gathered “indicates that the two companies were close competitors before the merger, and post-merger the parties will be the leading suppliers in PVC roofline products”.
OFT senior director Ali Nikpay said: “We are concerned that the merger will reduce the competitive options for roofers, builders and independent stockists and could lead to price increases”.
“We therefore believe that our duty to refer the merger to the Competition Commission has been triggered in this case.”
Epwin Holdings was founded by chairman Jim Rawson in 1976 and its acquisition of Latium with more than 2,500 employees and turnover of over £275m. Mr Kennedy has also retained a stake in the business.
