The Competition and Markets Authority (CMA) has launched an inquiry into the anticipated acquisition of Interserve’s Support Services division by Mitie.
Mitie is set to purchase Interserve’s Support Services division by the end of this year for a combined consideration of £271 million, comprising £120 million in cash and a 23.4 per cent shareholding in Mitie to be held by or on behalf of Interserve’s shareholders.
The CMA however, is now investigating the proposed acquisition to discover whether the deal would reduce competition in the FM sector.
The combined organisation, evenly balanced between the public and private sectors would become the largest facilities management company in the UK, employing over 77,500 people.
A CMA statement said: “The Competition and Markets Authority (CMA) 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.”
To assist with the assessment the CMA is inviting interested parties to offer their comments on the transaction by the 29 September 2020.