Zenith CC&P Current Awareness

CMA requires divestment in Ecolab/Holchem merger

8 October 2019

Prof. Suzanne Rab

Zenith's Suzanne Rab writes:

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.

Current Awareness

By the CC&P team