Sorcha O’Carroll, Senior Director for Mergers at the CMA, is concerned that prices on ventilation systems in the UK may increase, raising the final cost of building projects. The concern follows an investigation into a recent deal.
- Lindab International acquired HAS-Vest in October 2023.
- The deal removed a close competitor in ventilation equipment.
- Reduced competition may lead to higher project prices.
- The CMA gave the companies five working days to propose solutions.
What causes the increasing cost of the ventilation system?
The potential price increase follows a deal between Lindab International AB and HAS-Vent Holding Limited. Both companies produce ventilation equipment, but Lindab’s acquisition of HAS-Vent reduced competition. The CMA found that the companies competed closely to supply customers.
What consequences may it have?
The main consequence is the loss of a strong competitor for Lindab. The company may become a monopolist in UK ventilation equipment production and set higher prices, increasing final project costs and harming the building industry.
How is the industry trying to solve the problem?
UK building companies want adequate price and quality policies to continue. The CMA said the deal may reduce competition in England and Wales and asked Lindab and HAS-Vent to offer solutions before a deeper Phase 2 investigation.
Fencyx follows this situation and will inform customers about the process.