Ventilation merger could increase construction prices

The Competition and Markets Authority (CMA) said Lindab’s acquisition of HAS-Vent could increase prices for installers and contractors. 

Following an initial investigation, the watchdog found Lindab International AB’s purchase of HAS-Vent Holdings Limited “raises competition concerns” in the supply of circular ducts and fittings in England and Wales. 

Lindab is a ventilation company headquartered in Sweden and listed on the Nasdaq Stockholm exchange, primarily active in the UK through subsidiaries Lindab Limited and Ductmann Limited, which manufacture and distribute ventilation system products. 

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. 

The CMA said the deal combines the current market leader and second-largest supplier of circular ducts and fittings, and that following the merger, the combined business would “likely supply around half the market, with all other competitors being considerably smaller”. 

The watchdog found the companies compete closely to supply customers in England and Wales and the resulting loss of a strong competitor could raise costs for installers and contractors, and the overall costs in the building of commercial projects such as office spaces, schools and hospitals.  

Sorcha O’Carroll, senior director for mergers at the CMA, said: “We’re concerned this deal between Lindab and HAS-Vent may reduce competition in England and Wales, leading to higher prices for construction projects. 

“It is now up to Lindab and HAS-Vent to offer solutions to our concerns, otherwise this case will proceed to a more in-depth Phase 2 investigation.” 

Lindab and HAS-Vent now have five working days to respond. 

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