The competition watchdog is consulting on the proposal to accept building materials supplier Lindab’s offer to sell two of its sites following an investigation into its merger with ventilation system supplier, HAS-Vent.
In October, The Competition and Markets Authority (CMA) ordered Lindlab to sell off one site in Nottingham and another in Stoke-on-Trent, finding the merger could lead to “reduced choice and higher prices” for installers of ventilation systems in the areas.
On Wednesday, The CMA said Lindab International offered to sell the sites in order to end the investigation.
The watchdog has now invited feedback on the offer, giving interested parties until 11 December to respond via email.
As part of a phase two investigation, the inquiry concluded the deal resulted in a “substantial lessening of competition” in the supply of circular ducts and fittings in the local areas around Nottingham and Stoke-on-Trent.
To ensure the largest pool of potential purchasers, Lindab was required to market for sale all four sites it owns in the two areas and put forward potential buyers for the CMA to approve the deal.
Kirstin Baker, chairperson of the independent inquiry group, said: “Circular ventilation ducts and fittings are essential components in the construction of buildings, such as new offices and flats.”
This comes as the Swedish material supplier today announced structural measures and cost reductions to increase margins, including a personnel cut with the reduction of 180 full-time positions and the closure of 10 sites for warehousing, stores and local production.
Ola Ringdahl, President and CEO of Lindab, said: “These measures are important to reduce Lindab’s fixed costs and increase profitability at a time of weak demand.”
Lindab is a ventilation company headquartered in Sweden and listed on Nasdaq Stockholm.
In the UK, it is primarily active through subsidiaries Lindab UK and Ductmann, which both manufacture and distribute ventilation system products, including circular ducts and fittings.
HAS-Vent is a UK company headquartered in Wombourne, also active in the manufacture and distribution of ventilation system products.
Was this interesting? Try: Family left ‘utterly devastated’ after son tragically killed on site
If you have a tip or story idea that fits with our publication, please contact the news reporter/editor
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.