Lindab Ordered to Sell Nottingham and Stoke Sites

LINDAB must sell two sites because its acquisition of HAS-Vent has reduced competition in the areas it operates in.

Following an inquiry, the Competition and Markets Authority (CMA) has today ordered Lindab – suppliers of building and ventilation products – to sell two of its manufacturing sites.

Sweden-headquartered Lindab owns Lindab UK and Ductmann Limited, while HAS-Vent is a UK company. Both manufacture circular ducts and fitting used in ventilation systems.

The factory sites are in Nottingham and Stoke-on-Trent and the order to sell them comes after finding Lindab’s deal with HAS-Vent could lead to reduced choice and higher prices for ventilation installers in the areas.

The CMA says it scrutinised evidence such as internal documents and evidence from ventilation installers and other suppliers showing there is competition for circular ducts and fittings products at a local level.

It assessed the impact of the deal in various local areas, and then consulted on its provisional findings in August. The CMA concluded the deal has resulted in a “substantial lessening” of competition.

Lindab Must Sell

Lindab will now need to sell one site in each of the Nottingham and Stoke-on-Trent areas. To ensure the largest pool of potential purchasers and given the different operating models in the industry (which means that some buyers may want a site with manufacturing assets, while others may not), Lindab is required to put up 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.

“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.

“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.”

>> Read more about ventilation in the news