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CMA Smells A Rat As Rentokil & Cannon Deal Gets The Bullet

Rentokil
29 June 2018 | Updated 02 July 2018
 

The Competition and Markets Authority has referred Rentokil Initial’s purchase of Cannon Hygiene for an in-depth investigation after finding competition concerns.

The Competition and Markets Authority (CMA) decision follows an initial Phase 1 investigation, which found that the deal could lead to higher prices and lower quality for businesses.

Rentokil, which trades as Initial for washroom services and Cannon are two of the UK’s largest suppliers of washroom products and services. They install and maintain equipment such as air sanitisers, feminine hygiene units, nappy bins and soap dispensers in commercial, industrial and public buildings.

The firms did not offer measures to address the CMA’s concerns and so it has referred the merger for a more in-depth, Phase 2 investigation.

A decision on the merger will now be made by a group of independent panel members supported by a case team of CMA staff. The deadline for the final report is 12 December 2018.

Picture: Is the Rentokil purchase of Cannon Hygiene about to be all washed up?

Article written by Cathryn Ellis | Published 29 June 2018

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