The Competitions and Markets Authority (CMA) has intervened in Lindab’s acquisition over monopoly concerns.
- Lindab International AB’s takeover of HAS-Vent Holdings prompted CMA’s order to sell UK branches.
- To maintain competitive balance, Lindab must sell branches in Nottingham and Stoke-on-Trent.
- CMA’s decision is based on evidence suggesting reduced competition at local levels.
- The sale must be concluded within 12 weeks from 15 October 2024.
The Competitions and Markets Authority (CMA) has imposed stringent conditions on Lindab International AB due to monopoly fears stemming from its acquisition of HAS-Vent Holdings in the West Midlands. The CMA’s decision mandates the sale of Lindab’s branches in Nottingham and Stoke-on-Trent to safeguard competitive practices in the local market. This intervention underlines the authority’s commitment to preventing reduced consumer choice and elevated prices.
The decision came after thorough consultations with Lindab, HAS-Vent, and third parties. Lindab and HAS-Vent argued that their collective market share in circular ducts and fittings was less significant than the CMA claimed. Despite these counterarguments, the CMA determined that the merger would notably diminish competition in these areas, potentially disadvantaging consumers by limiting product availability and increasing costs.
The evidence underpinning the CMA’s ruling was collected from installers and other suppliers of circular ducts and fittings, highlighting a localised competition market. As Lindab UK and Ductman operate 24 branches and HAS-Vent another 10 across the UK, this action by the CMA aims to ensure that competitive integrity is maintained in the Nottingham and Stoke-on-Trent regions.
Kirstin Baker, chair of the CMA independent inquiry group, emphasised the importance of maintaining competition. She remarked, “Circular ventilation ducts and fittings are essential components in the construction of buildings, such as new offices and flats.” Her statement underscores the decision’s focus on protecting the economic interests of local installers and developers.
According to the CMA’s order, Lindab has a 12-week timeframe, commencing from 15 October 2024, to fulfil the sale of the specified branches. This requirement is a decisive step towards reinstating competitive equilibrium in the affected markets.
The CMA’s directive for Lindab to sell its UK branches underscores its resolve in maintaining fair competition.
