Cleanzine: your weekly cleaning and hygiene industry newsletter 18th April 2024 Issue no. 1110

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CMA investigation of completed acquisition by Ecolab of Holchem Group steps up a gear

The Competition & Markets Authority's Phase 2 investigation is now underway, into the recently completed acquisition of UK-based hygiene and cleaning products and services supplier, Holchem Group, by Ecolab.

The investigation started last December, when the CMA served Ecolab with an enforcement order under section 72(2) of the Enterprise Act 2002.

In April, the CMA decided, on the information which was at that stage available, that it was or may be the case that the merger had resulted - or may be expected to result - in a substantial lessening of competition within a market or markets in the UK.

The merger was later referred for a phase 2 investigation as the parties had been unable to offer acceptable undertakings that the competition concerns would be addressed, and in May, the CMA directed Ecolab to appoint a monitoring trustee.

Ecolab purchased Selkirk, Scotland-based cleaning product manufacturer RP Adam in 2017 and this year announced that it was to close the company, with the loss of 48 jobs.

It said its decision to close the plant, which has operated in the region for nearly 130 years, had come about following an extensive review of its UK operations to "further optimise" their efficiency. It had concluded that other plants were better suited to meet the long-term needs of its business, despite singing the praises of the team and the quality of work carried out at the site. it said it would work to reduce the effect of any redundancies in Selkirk.

www.ecolab.com / www.holchem.co.uk

20th June 2019