OFT refers PVC roofline products merger to Competition Commission

49/12 18 June 2012

The OFT today referred the completed acquisition by Epwin Holdings Limited of Latium Building Products Holdings Limited to the Competition Commission for further investigation.

The companies supply replacement windows, rainwater collection products, and PVC roofline products such as soffit boards, fascia and cladding.

The evidence gathered by the OFT indicates that the two companies were close competitors before the merger, and post-merger the parties will be the leading suppliers in PVC roofline products.

Ali Nikpay, OFT Senior Director and Decision Maker in this case said:

'We are concerned that the merger will reduce the competitive options for roofers, builders and independent stockists and could lead to price increases. We therefore believe that our duty to refer the merger to the Competition Commission has been triggered in this case.'

The Competition Commission is expected to report by 2 December 2012.

NOTES

The Reference Test - the OFT has a duty to make a reference to the Competition Commission if the OFT believes that it is or may be the case that a relevant merger situation has been created; and the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
Under the Enterprise Act 2002 a relevant merger situation is created if two or more enterprises have ceased to be distinct enterprises; and the value of the turnover in the United Kingdom of the enterprise being taken over exceeds £70 million; or as a result of the transaction, in relation to the supply of goods or services of any description, a 25 per cent share of supply in the UK (or a substantial part thereof) is created or enhanced.
The Competition Commission may extend the 24-week period within which it is required to publish its report by no more than eight weeks if it considers that there are special reasons why the report cannot be published within that period.
The text of these decisions will be placed in the Mergers' section of this web site as soon as is reasonably practicable.

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