A ventilation manufacturer has been told to sell a Stoke-on-Trent site after a merger investigation.
Lindab – a supplier of circular ducts and fittings used in ventilation systems in buildings – has been told to close one of two sites in the city, along with another in Nottingham, as its acquisition of HAS-Vent Holdings could lead to reduced choice and higher prices for installers in both cities.
An in-depth Phase 2 merger inquiry carried out by the Competition and Markets Authority (CMA), found that competition for these products occurs at a local level and that the deal has resulted in a substantial lessening of competition in the supply of circular ducts and fittings in the local areas centred around Nottingham and Stoke-on-Trent.
Northampton-headquartered Lindab must sell one site in each impacted area.
To ensure the largest pool of potential purchasers and given the different operating models in the industry, which means that some purchasers may want a site with manufacturing assets, while others may not, Lindab is required to market for sale all four sites it owns in the two areas and put forward potential buyers for the CMA to approve.
Kirstin Baker, Chair 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.
“Our investigation found this deal – by removing one of two main suppliers of these products in the Nottingham and Stoke areas – risked installers and developers having to pay more for these products.
“As a result, we are requiring Lindab to sell one site in each of the two areas, which should ensure local installers and businesses can benefit from effective competition.”
Lindab’s Stoke-on-Trent base is at Etruria Trading Estate whilst HAS-Vent’s city base is in Cobridge.
