22 April 2024, 22:29
By Furniture News May 06, 2022

Competition watchdog investigates foam business takeover

The Competition & Markets Authority (CMA) is launching an investigation into Carpenter's planned acquisition of Recticel's engineered foams business.

The CMA has confirmed that it has sufficient information in relation to the proposed merger to begin an investigation today (ending 4th July 2022), from which it will decide whether the issue warrants further probing through a Phase 2 investigation.

Both businesses are key suppliers to the UK furniture industry, with the planned takeover threatening to reduce competition within the marketplace.

The CMA's Rafia Saif ([email protected]) invites written representations about any competition issues, to be submitted by 19th May.

"The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the UK for goods or services," states the CMA.

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