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

Lindab International ABAnnouncement

15/10/2024 09:15

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RNS Number : 2226I  Competition and Markets Authority  15 October 2024

FOR IMMEDIATE RELEASE: 08h00 TUESDAY 15 OCTOBER 2024

Lindab required to sell sites in Nottingham and Stoke-on-Trent after
ventilation merger investigation

The CMA found Lindab's acquisition of HAS-Vent reduced competition in 2 areas
of the UK.

Having carried out an in-depth Phase 2 merger inquiry, the Competition and
Markets Authority (CMA) has today ordered Lindab - a supplier of circular
ducts and fittings used in ventilation systems in buildings - to sell 2 sites
after finding its deal with HAS-Vent could lead to reduced choice and higher
prices for installers of ventilation systems in both Nottingham and
Stoke-on-Trent.

The independent CMA group leading the inquiry 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 this evidence, the group found that competition for these
products occurs at a local level.

Having assessed the impact of the deal in various local areas, and then
consulted on its provisional findings published in August, the inquiry group
has concluded the deal has resulted 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.

To resolve the loss of competition, the CMA is requiring Lindab to sell 1 site
in each of the impacted areas. To ensure the largest pool of potential
purchasers and given the different operating models in the industry (which
means that some purchasers may want a site with manufacturing assets, while
others may not), Lindab is required to market for sale all 4 sites it owns in
the two areas and put forward potential buyers for the CMA to approve.

Kirstin Baker, Chair of the 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."

 

More information, including the CMA's final report, can be found via the
Lindab / HAS-Vent case page
(https://www.gov.uk/cma-cases/lindab-slash-has-vent-merger-inquiry) .

Notes to editors:

1.   The CMA will require Lindab to market for sale each of the following
potential divestment sites: Lindab Nottingham, Lindab Stoke-on-Trent, HAS-Vent
Nottingham and HAS-Vent Stoke-on-Trent.

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.   Whilst this decision marks the end of the CMA's investigation, it will
closely monitor the parties progress in implementing the remedy.

5.   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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