UK regulator says Lindab's acquisition of HAS-Vent reduces competition

Lindab International AB

26/04/2024 07:57

April 26 (Reuters) - UK's competition regulator said on
Friday Sweden-based Lindab's  LIAB.ST  acquisition of British
ventilation company HAS-Vent Holdings Ltd could reduce
competition and increase prices for installers and contractors.
    
WHY IS IT IMPORTANT?
The Competition and Markets Authority (CMA), following its
initial phase 1 probe, found that the companies compete closely
to supply customers in England and Wales, and the resulting loss
of a strong competitor could increase prices.
    
CONTEXT
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.
    
BY THE NUMBERS
At the time of the deal announcement, HAS-Vent had 10 branches
in the UK, some in locations where Lindab did not have
operations, and the British company had an annual turnover about
$26 million. 
    
WHAT’S NEXT
Lindab and HAS-Vent have five working days to offer solutions
which resolve the regulator's competition concerns and if not,
the deal would move to an in-depth phase 2 investigation.
    
($1 = 10.8661 Swedish crowns)

 (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Mrigank Dhaniwala)
 ((abyjose.koilparambil@thomsonreuters.com; +917483275231;))