REG - Competition and Mkts - Merger Update - Lindab / HAS-Vent
26/04/2024 08:15
For best results when printing this announcement, please click on link below: http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240426:nRSZ1830Ma&default-theme=true RNS Number : 1830M Competition and Markets Authority 26 April 2024 FOR IMMEDIATE RELEASE - 07h00 FRIDAY 26 APRIL Ventilation deal could increase construction prices The CMA has found that Lindab's acquisition of HAS-Vent could increase prices for installers and contractors. Following an initial Phase 1 investigation, the Competition and Markets Authority (CMA) has found that Lindab International AB's (Lindab) purchase of HAS-Vent Holdings Limited (HAS-Vent) raises competition concerns in relation to the supply of circular ducts and fittings in England and Wales. Lindab is a ventilation company primarily active in the UK through subsidiaries Lindab Limited (Lindab UK) and Ductmann Limited (Ductmann), which both manufacture and distribute ventilation system products, including circular ducts and fittings. HAS-Vent is also active in the manufacture and distribution of ventilation system products, including circular ducts and fittings, in England and Wales. The CMA has found that the deal combines the current market leader and second largest supplier of circular ducts and fittings, and that following the merger, the combined business would likely supply around half the market, with all other competitors being considerably smaller. Having reviewed the evidence, including internal documents and evidence from customers and competitors, the CMA found that the companies compete closely to supply customers in England and Wales. The resulting loss of a strong competitor could therefore increase prices for installers and contractors, and the overall costs in the building of commercial projects such as office spaces, schools and hospitals. Sorcha O'Carroll, Senior Director for Mergers at the CMA, said: "We're concerned this deal between Lindab and HAS-Vent may reduce competition in England and Wales, leading to higher prices for construction projects. "It is now up to Lindab and HAS-Vent to offer solutions to our concerns, otherwise this case will proceed to a more in-depth Phase 2 investigation." Lindab and HAS-Vent now have 5 working days to offer solutions which fully resolve the CMA's competition concerns, otherwise it will refer the deal to an in-depth Phase 2 investigation. More information can be found on the Lindab / HAS-Vent case page (https://www.gov.uk/cma-cases/lindab-slash-has-vent-merger-inquiry) . ENDS Notes to editors: 1. Lindab is a ventilation company headquartered in Sweden and listed on the Nasdaq Stockholm exchange. In the UK, Lindab is primarily active through subsidiaries Lindab Limited (Lindab UK) and Ductmann Limited (Ductmann), which both manufacture and distribute ventilation system products, including ventilation ducts and fittings. 2. HAS-Vent is a UK company headquartered in Wombourne, also active in the manufacture and distribution of ventilation system products, including ducts and fittings, in England and Wales. 3. For media enquiries, contact the CMA press office on 020 3738 6460 or press@cma.gov.uk (mailto:press@cma.gov.uk) . This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com (mailto:rns@lseg.com) or visit www.rns.com (http://www.rns.com/) . RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy) . END MERSEFSIMELSESL