The Competition and Markets Authority (CMA) has decided to launch a more in-depth investigation into the merger foam producers Carpenter and Recticel.
The CMA announced the decision of instigating a Phase 2 investigation due to not being satisfied with the ‘remedy undertakings offered by Carpenter’, a statement from Recticel said.
“This means that the CMA will investigate in more detail what impact the intended transaction will have on competition, and what remedy undertakings could be committed to by the parties in order to allow for clearance of the transaction.
“Recticel is currently analyzing the impact of the CMA’s decision together with Carpenter and will provide an update about any further development in due time.”
The CMA is concerned that the loss of competition brought about by the merger of Carpenter and Recticel’s global engineered foams business could result in a worse deal for manufacturers, which could ultimately mean that consumers face higher prices and less choice.
The CMA will investigate and report its findings within a period ending on 1 January 2023.