CMA issues its Phase I decision with respect to the divestment by Recticel of its Engineered Foams business line to Carpenter
Recticel announces that on 4 July 2022 the UK Competition and Markets Authority (the “CMA”) has issued its Phase I decision with respect to the divestment by Recticel of its Engineered Foams business line to Carpenter (the “Transaction”) and has found that the Transaction would raise competition concerns in the UK market.
The CMA indicated that the Transaction would remove a close competitor of Carpenter’s, with Recticel and Carpenter representing 2 of just 3 foam producers with plants in the UK. The affected UK Recticel Engineered Foams businesses represent 8.7% of the 2021 turnover of the Recticel Engineered Foams business.
Carpenter now has until 11 July 2022 to submit remedy proposals to address the CMA’s competition concerns. The CMA then has a further 5 working days to consider whether to accept any remedy offer made by Carpenter instead of referring the case for an in-depth Phase 2 investigation.
Recticel will make further announcements in this respect in due course.