The Competition and Markets Authority (CMA) is examining a merger that could impact local competition in the Midlands.
- Concerns have been raised over a potential significant reduction in competition for circular ducts and fittings.
- The CMA has provisionally found that the merger may lead to less choice and higher prices for specialist installers.
- Lindab’s acquisition of HAS-Vent is under scrutiny for possibly supplying half the market in England and Wales.
- Stakeholders are invited to share their views as the CMA prepares its final report.
The Competition and Markets Authority (CMA) is scrutinising a merger between ventilation suppliers that could have significant implications for local competition within the Midlands. Following a detailed inquiry, the watchdog has raised concerns about potential anti-competitive outcomes stemming from Lindab’s acquisition of HAS-Vent. The merger is under investigation due to fears it could lead to a substantial lessening of competition in the circular ducts and fittings sector in regions around Nottingham and Stoke-on-Trent.
In its provisional findings, the CMA noted that the merger could result in reduced options and increased costs, particularly affecting specialist installers of ventilation systems. The two merging firms, Lindab and HAS-Vent, are considered close competitors in these areas, facing minimal competition from other suppliers. The watchdog fears this could diminish market competition, adversely affecting purchasing choices in the construction industry.
During the first phase of its investigation, the CMA highlighted that the merger would position the combined entity to supply approximately half of the circular ducts and fittings across England and Wales, intensifying concerns about market dominance. However, these findings were challenged by Lindab and HAS-Vent, who argued that their market share is not as extensive as the CMA suggested.
A Lindab spokesperson indicated the firm’s commitment to engaging with the CMA’s ongoing inquiry, stating, “We will, following our analysis, continue to work on the remaining locations highlighted by the CMA in their provisional findings.” The company continues to cooperate fully with the regulatory body while the investigation proceeds.
Interested parties are invited to present their insights concerning the provisional findings by 12 September, ahead of the publication of the final report scheduled for 17 October. This step reflects the CMA’s dedication to a comprehensive evaluative process, inviting stakeholder engagement to ensure all perspectives are considered.
The CMA’s final verdict on the merger’s impact on competition is awaited in October.
