CMA
requires divestment in Ecolab/Holchem merger
The
Competition and Markets Authority (CMA) has published its final report on its
merger investigation of the completed acquisition by Ecolab Inc. of The Holchem
Group Limited.
Ecolab
and Holchem are among the largest suppliers of formulated cleaning chemicals to
the food and beverage sector in the UK.
The
CMA finds that the merger may be expected to result in a substantial lessening
of competition in the market for the supply of formulated cleaning chemicals to
UK food and beverage customers.
The
CMA identified competition concerns due to an expected increase in prices, a
reduction in quality or customer services and a reduction in innovation and the
range of services offered.
The
CMA has required Ecolab to divest Holchem Laboratories Limited to address the “very
serious” adverse effects of the merger it has identified.
Source:
https://www.gov.uk/government/news/cleaning-chemicals-firm-must-sell-acquired-business
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