The Competition and Markets Authority (CMA) has raised local competition concerns in the Midlands as part of its probe into last year’s merger of two duct and fittings suppliers.
In its provisional findings from the second phase of its inquiry into Lindab’s acquisition of HAS-Vent, the CMA found the deal “has resulted, or may be expected to result, in a substantial lessening of competition [SLC] in the supply of circular ducts and fittings in the local areas centred around Nottingham and Stoke-on-Trent”.
In these areas, the two firms are “close competitors and face only limited competition from alternative suppliers”, the CMA found. This could lead to reduced choice and higher prices in the construction sector, the competition watchdog added, “particularly for specialist installers of ventilation systems in those areas”.
In the first phase of its investigation, the CMA found that the merged firm would supply half of the circular ducts and fittings in England and Wales if the merger went ahead.
This was disputed by Lindab and HAS-Vent, which argued in June that they did not consider the merger would lead to a national SLC, partly because their market share of circular ducts and fittings was lower than the CMA believed, they said.
The CMA said that “any interested parties” can contact them about its phase two provisional findings before 5pm on 12 September. Its final report is due to be published on 17 October.
A spokesperson for Lindab told Construction News: “We will, following our analysis, continue to work on the remaining locations highlighted by the CMA in their provisional findings. We continue to co-operate with the CMA in their investigation.”
Sweden-based Lindab operates in the UK mostly through subsidiaries Lindab UK and Ductmann, with 21 branches in England and Wales. HAS-Vent, which is headquartered in Wombourne near Wolverhampton, has 10 branches.
CN contacted HAS-Vent for further comment.
