After opening an investigation into the merger, the Competition and Markets Authority (CMA) has today issued its Phase 1 decision.
Having considered a wide range of evidence, it has found there could be a substantial reduction in competition, which may lead to higher prices or reduced quality for customers that primarily use a single provider across the whole or a large part of the UK. This is because Rentokil and Mitie are two of the four major suppliers at this level, with a large combined market share.
The CMA has found that it is unlikely that other companies will expand or enter the market in a timely manner and offset the loss of competition caused by the merger.
Rentokil must now offer proposals to address these concerns by 23 April or face an in-depth Phase 2 investigation into the merger.
Join 12,000 other FMs from over 46 countries at ExCeL London from the 18-20 June 2019. You and your team will learn from skilled trainers in CPD-accredited seminars and workshops at the only IWFM supported exhibition. You’ll test, trial and source smart solutions across technology, cleaning, FM services, waste and energy management. You’ll meet enthusiastic suppliers to identify new collaborations. By registering, you’ll also gain access to three neighbouring shows to enhance your specialisms across fire, security and health and safety. Get your free ticket for Facilities Show.