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The Competition and Markets Authority (CMA) has initiated a Phase 2 inquiry into Lindab International AB’s acquisition of HAS-Vent Holdings following initial competition concerns. The review will assess the potential impact of the merger on the supply of circular ducts and fittings in England and Wales.
Lindab UK, headquartered in Northampton, is part of Lindab International AB, a major European ventilation company. The acquisition of HAS-Vent Holdings, based in Wombourne, aims to merge the two businesses, but has raised concerns about reduced competition in the market.
The inquiry has identified that the acquisition might significantly diminish competition in the supply of circular ducts and fittings, especially in the Nottingham and Stoke-on-Trent regions. In these areas, where the companies are prominent competitors with few alternatives, the merger could result in fewer choices and increased prices for the construction sector, particularly impacting specialist ventilation system installers.
Kirstin Baker, chair of the independent inquiry group, commented, “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.”
Baker added that the findings are provisional and invited responses on the preliminary conclusions and potential remedies for the case.
