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.
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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 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 merger inquiry page.
Notes to editors:
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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.
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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.
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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.
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For media enquiries, contact the CMA press office on 020 3738 6460 or [email protected].