The Competitions and Markets Authority (CMA) has ordered a ventilation firm to sell two UK branches to avoid creating a monopoly.
The watchdog ruled that Sweden-based Lindab International AB’s takeover of HAS-Vent Holdings in the West Midlands has led to less competition.
Following consultation with both the firms and third parties, the CMA ordered two branches – one in Nottingham and one in Stoke-on-Trent – to be sold, or there would be a “substantial” lessening of competition.
This must take place within 12 weeks from 15 October 2024.
The CMA first raised concerns in August after a phase two merger inquiry. It concluded that the merger will cause less competition in circular ducts and fittings in and around Nottingham and Stoke-on-Trent. This could lead to reduced choice and higher prices for customers in those areas.
The two parties countered that their market share of circular ducts and fittings was lower than the CMA believed.
The watchdog based its decision on evidence from installers as well as other suppliers of circular ducts and fittings. Based on this evidence, it found that competition for these products occurs at a local level.
Lindab operates in the UK as Lindab UK and Ductman, which combined have 24 branches in the UK. HAS-Vent operates 10 branches across the UK.
Kirstin Baker, chair of the CMA 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.”
