£50m acquisition deal raises competition concerns

The Competition and Markets Authority (CMA) has raised concerns about the impact of the acquisition of Findel Education Ltd by Yorkshire Purchasing Organisation (YPO).

The findings follow a first phase of the investigation which stated at the end of March, into the deal which was described by Simon Hill, managing director of YPO as enabling “YPO to continue to grow its core activity”.

The CMA however has said that the deal; which was led by Wakefield Council in its capacity as the lead authority of the joint committee and valued Findel at £50m, “raises competition concerns in the supply of resources to educational institutions in the UK.”

YPO and Findel Education are the second and third largest generalist educational distributors respectively. They supply a range of educational resources including stationery, furniture and science materials to different types of educational institutions across the country.

Following the initial Phase 1 investigation of anticipated acquisition, the CMA has found that the two companies compete closely with each other.

As a result it’s been concluded that the merger could reduce competition within the sector, and could leave educational institutions with fewer alternative suppliers and worse terms when purchasing educational supplies.

Therefore the CMA plans to refer the merger a Phase 2 investigation.