Manufacturer to close sites for watchdog to approve acquisition
A ventilation manufacturer has been ordered to close two sites in order for the Competition and Markets Authority (CMA) to approve an acquisition.
Northampton-headquartered Lindab UK will have to shut sites in Nottingham and Stoke-on-Trent, as its acquisition of Wombourne-based HAS-Vent Holdings could lead to reduced choice and higher prices.
Having carried out a Phase 2 merger inquiry, the CMA said competition for ventilation products occurs locally and has ordered Lindab to sell one site in each impacted area.
Lindab will have to market all four sites for sale in the two areas and put forward potential buyers for the CMA to approve, to ensure there is a large pool of purchasers as some may want a site with manufacturing assets and others may not.
The firm is owned by parent group Lindab International AB, a leading ventilation company in Europe, which acquired Wombourne-based HAS-Vent Holdings with plans to merge the two businesses together.
Kirstin Baker, chair of the independent inquiry group said: “Circular ventilation ducts and fittings are essential components in the construction of buildings, such as new offices and flats.
“Our investigation found this deal – by removing one of two main suppliers of these products in the Nottingham and Stoke areas – risked installers and developers having to pay more for these products.
“As a result, we are requiring Lindab to sell one site in each of the two areas, which should ensure local installers and businesses can benefit from effective competition.”
