REG - Competition and Mkts - Merger Update: Lindab / HAS-Vent

Lindab International ABAnnouncement

22/08/2024 09:15

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RNS Number : 4048B  Competition and Markets Authority  22 August 2024

Deal could result in higher costs for ventilation systems, CMA provisionally
finds

Phase 2 review provisionally finds competition concerns in the local areas
around Nottingham and Stoke-on-Trent.

The Competition and Markets Authority (CMA) has been carrying out an in-depth
Phase 2 inquiry into Lindab International AB's (Lindab) purchase of HAS-Vent
Holdings Limited (HAS-Vent) after identifying competition concerns
(https://www.gov.uk/government/news/ventilation-deal-could-increase-construction-prices)
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 welcomes responses to its provisional findings from those interested
in this 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.

For more information, visit the Lindab / HAS-Vent
(https://www.gov.uk/cma-cases/lindab-slash-has-vent-merger-inquiry) merger
inquiry page.

Notes to editors:

1.   In a Phase 2 review, the group considers whether it is more likely than
not that a deal will substantially lessen competition - a higher threshold
than Phase 1.

2.   Lindab is a ventilation company headquartered in Sweden and listed on
Nasdaq Stockholm. 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 circular
ducts and fittings.

3.   HAS-Vent is a UK company headquartered in Wombourne, also active in the
manufacture and distribution of ventilation system products, including
circular ducts and fittings, in England and Wales.

4.   For media enquiries, contact the CMA press office on 020 3738 6460
or press@cma.gov.uk (mailto:press@cma.gov.uk) .

 

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