The Competition and Markets Authority (CMA) has opened an investigation into the proposed acquisition by Carpenter Co. of the engineered foams business of Recticel NV/SA.
In a brief statement, the CMA said ‘it 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 United Kingdom for goods or services’.
The invitation to comment on the investigation closes on 19 May 2022, with a deadline on the decision to be on 4 July 2022.
Carpenter, one of the world’s largest chemical manufacturers, producing polyurethane foam, bedding and furniture foam, carpet cushion, expanded polystyrene, air filtration media, polyether polyols, chemical systems and tire fill, previously announced the acquisition of Recticel’s Engineered Foams Division back in March this year.
The company said that the merger would create the ‘world’s largest vertically integrated manufacturer of polyurethane foams and specialty polymer products’.
“The merger represents a unique opportunity for Carpenter to expand its footprint in Europe. There will also be an opportunity for Carpenter to acquire sizable business activities in segments of the flexible polyurethane foam market. This transaction will involve multiple production facilities and offices not only in Europe, but also in the United States and Asia,” the company said.
CEO of Carpenter Co., Brad Beauchamp, added: “We are very excited about the acquisition of Recticel’s Engineered Foams Business, as it will strengthen our position in the technical foam markets,” expressed. “We look forward to join forces with Recticel’s Foams business to deliver enhanced value for our customers and shareholders.”