UK building prices may increase due to the ventilation systems

Spoiler: the reason for this is a monopoly.

Sorcha O’Carroll, Senior Director for Mergers at the CMA, is afraid that prices on ventilation systems in the UK may increase, which generally increases the final cost of building projects. The basics of his disturbance is an investigation that his company recently made. Other players in the UK building market are also afraid that such a situation may cause an inadequate increasing the final cost of projects.

The main source: Ventilation deal could hike product prices for contractors

What causes the increasing cost of the ventilation system

The reason for the investigation and potential price increases is a deal between Lindab International AB and HAS-Vest Holding Limited. Both these companies produce equipment for ventilation systems, but in October 2023, Lindab International bought a HAS-Vest, thereby reducing competition. The last CMA investigation found that these companies compete closely to supply customers, and now this competition has disappeared.

What consequences it may have

The main consequence of this deal is the loss of a strong competitor for Lindab. Now factory become a monopolist in UK ventilation equipment production and may not be afraid of rivalry and set higher prices. It caused a general increase in final project cost and harmed Great Britain’s building industry.

How industry try to solve the problem of ventilation

The main goal of UK building companies is a desire to be sure that adequate price and quality policies will be kept. 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.” Now companies have 5 work days to propose solutions, that will satisfy all market players.

Fencyx, as one of the leaders of the UK building industry, follows this situation and will further inform you about the process.

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