Competition watchdog clears waste deal
THE Competition Commission (CC) has provisionally cleared the joint venture between Deeside-based Tradebe Environmental Services and SITA UK (Sita).
The new company, called Tradebe Healthcare Holdings, provides clinical waste management services to the NHS and other healthcare providers from nine sites across England and Wales.
The Competition Commission was was concerned about the potential for loss of competition around Gloucester and Birmingham but said analysis showed prices were not expected to increase and some customers would benefit from lower prices following the merger.
Chairman of the inquiry Alasdair Smith, said: “We have provisionally concluded that the presence of a strong competitor – SRCL – will stop Tradebe/Sita from being able to raise prices as a result of the joint venture. In fact, some customers could benefit from lower prices as a result of increased rivalry, as the joint venture may well be able to compete more effectively with SRCL than the two companies could individually.”
The Office of Fair Trading (OFT) referred the case to the commission on October 29. A final report is expected by April 14.
