(Reuters) - UK's competition regulator said on Friday Sweden-based Lindab's acquisition of British ventilation company HAS-Vent Holdings Ltd could reduce competition and increase prices for installers and contractors.
WHY IS IT IMPORTANT?
The Competition and Markets Authority (CMA), following its initial phase 1 probe, found that the companies compete closely to supply customers in England and Wales, and the resulting loss of a strong competitor could increase prices.
CONTEXT
Lindab strengthened its sales and production of ventilation products in the UK by announcing the acquisition of Birmingham-based HAS-Vent in October last year.
BY THE NUMBERS
At the time of the deal announcement, HAS-Vent had 10 branches in the UK, some in locations where Lindab did not have operations, and the British company had an annual turnover about $26 million.
WHAT’S NEXT
Lindab and HAS-Vent have five working days to offer solutions which resolve the regulator's competition concerns and if not, the deal would move to an in-depth phase 2 investigation.
($1 = 10.8661 Swedish crowns)