Competition & Markets Authority
CMA refers cleanroom laundry merger for in-depth investigation
The CMA has referred Fenland’s anticipated acquisition of Fishers’ cleanroom laundry business for a phase 2 investigation.
Fenland offered undertakings on 23 December 2015 to address the CMA’s competition concerns in lieu of a reference. After careful consideration, the CMA was not confident that these would resolve the concerns in a clear-cut manner (see note) and has therefore decided to refer the merger for an in-depth phase 2 investigation.
A decision on the merger at phase 2 will be made by a group of independent panel members supported by a case team of CMA staff. The deadline for the final report will be 19 June 2016.
Details of the CMA’s decision will be available on the case page shortly.
Section 73(3) of the Enterprise Act 2002 states:
…the CMA shall, in particular, have regard to the need to achieve as comprehensive a solution as is reasonable and practicable to the substantial lessening of competition and any adverse effects resulting from it.
In the Mergers: Guidance on the CMA’s jurisdiction and procedure, paragraph 8.3 states that:
the CMA must be confident that the competition concerns identified will be resolved by means of the UILs (undertakings in lieu) offered without the need for further investigation. UILs are therefore appropriate only where the competition concerns raised by the merger and the remedies proposed to address them are clear-cut, and those remedies are effective and capable of ready implementation.
This is further set out in Mergers – Exceptions to the duty to refer and undertakings in lieu of reference guidance (OFT1122, December 2010, adopted by the CMA as set out in Mergers: Guidance on the CMA’s jurisdiction and procedure, Annex D).
Latest News from
Competition & Markets Authority
CMA partially upholds appeal on energy distribution licence changes21/09/2023 15:30:00
The CMA has partially upheld an appeal against the decision by the Gas and Electricity Markets Authority to modify the licences of two electricity distribution network operators.
CMA decision upheld in major drug price abuse case19/09/2023 13:20:00
Firms which raised prices for key medicine by over 10,000% from 70p to £72 have had their appeal against a CMA finding of excessive pricing rejected by the Competition Appeal Tribunal (CAT).
Proposed principles to guide competitive AI markets and protect consumers19/09/2023 10:25:10
CMA publishes report and proposed principles following review of foundation models
CMA launches review of vet sector07/09/2023 10:15:00
The CMA is opening a review of how veterinary services are bought and sold amid concerns that pet owners may not be getting a good deal or receiving the information they need to make good choices.
CMA wins legal challenge in Cérélia/Jus-Rol case01/09/2023 16:15:00
The Competition Appeal Tribunal has fully dismissed a legal challenge by Cérélia and upheld the CMA’s decision to block Cérélia’s acquisition of Jus-Rol.
CMA update on work in housing sector25/08/2023 12:20:00
CMA publishes progress update on consumer protection work in private rented housing and housebuilding market study.
CMA call for views: how regulators work together to protect consumers24/08/2023 12:10:00
The CMA calls for views on how it works with the sector regulators to promote competition for the benefit of consumers
CMA updates scope of concerns in rail signalling merger23/08/2023 12:05:00
Updated provisional findings have been issued by the CMA in its investigation of Hitachi’s proposed takeover of Thales GTS.