A Phase 2 review by the Competition and Markets Authority (CMA) has provisionally found competition concerns in ventilation company Lindab’s purchase of HAS-Vent, in the local areas around Nottingham and Stoke-on-Trent.
The CMA has been carrying out an in-depth Phase 2 inquiry into the deal after identifying competition concerns during its initial Phase 1 inquiry. The independent CMA group leading the Phase 2 inquiry has probed in more detail the impact of the deal on the supply of circular ducts and fittings in England and Wales.
The group has scrutinised a wide range of evidence, including the parties’ internal documents and evidence from installers of ventilation systems and other suppliers of circular ducts and fittings. Based on that evidence, the group provisionally considers that competition for these products occurs at a local level.
Having assessed the impact of the deal in various local areas, the group has provisionally found that the deal has resulted, or may be expected to result, in a substantial lessening of competition in the supply of circular ducts and fittings in the local areas centred around Nottingham and Stoke-on-Trent.
In these areas the parties are close competitors and face only limited competition from alternative suppliers. This could lead to reduced choice and higher prices in the construction sector, particularly for specialist installers of ventilation systems in those areas.
Kirstin Baker, Chair of the independent inquiry group, said: “We’re concerned this would remove one of two main suppliers of circular ventilation ducts and fittings in the Nottingham and Stoke areas, risking installers of these systems paying over the odds and then having to pass these costs onto their own customers.
“Our findings are provisional, and we now welcome responses on our preliminary conclusions and the potential remedies in this case.”
The CMA is welcoming responses to its provisional findings from those interested in the deal by Thursday 12 September. These will be considered by the inquiry group prior to issuing its final report, which is due by Thursday 17 October.
