UK's CMA orders Lindab to sell two sites to allay competition concerns (updated)

Lindab International AB

15/10/2024 08:58

(Adds details on merger inquiry in paragraphs 2,4 and 6,
details on deal)
       Oct 15 (Reuters) - Sweden's Lindab  LIAB.ST  must sell
two of its sites in Britain since its acquisition of domestic
peer HAS-Vent could result in higher prices for ventilation
systems, the UK competition regulator said on Tuesday after an
in-depth probe.
    The Competition and Markets Authority (CMA) found 
"substantial lessening of competition" in the supply of circular
ducts and fittings in areas around Nottingham and Stoke-on-Trent
in its in-depth merger investigation.
        Lindab is required to market for sale all four sites it
owns in the two areas and put forward potential buyers for the
CMA to approve, the regulator said. 
    Lindab strengthened its sales and production of ventilation
products in the UK by announcing the acquisition of
Birmingham-based HAS-Vent in October last year.
    In the U.K., Lindab operates through Lindab UK and Ductmann,
which together have 24 branches. Both units manufacture and
distribute ventilation system products. 
    CMA said last month that divestiture of the overlapping
Lindab/HAS-Vent branches in each local area would be the far
more proportionate remedy.
    Lindab did not immediately respond to Reuters' request for
comment.

 (Reporting by Shanima A in Bengaluru; Editing by Savio D'Souza
and Mrigank Dhaniwala)
 ((shanima.a@thomsonreuters.com; (Direct: +91 72 5956 7774);))