CMA to investigate HRP acquisition

HRP-logoUK: Beijer Ref’s integration of UK refrigeration wholesaler HRP has been put on hold pending investigation by the Competition and Markets Authority (CMA).

The acquisition of HRP, announced in November and completed on February 1, saw HRP joining existing Beijer Ref brands Dean & Wood and RW, and made Beijer Ref the leading refrigeration and air conditioning wholesaler in the UK.

Although intending to operate HRP as an independent brand, Beijer Ref planned to stem HRP’s considerable losses and turn it back into a profitable business through what it described as “efficient co-ordination with the Group’s existing UK refrigeration operations and by implementing a fully-comprehensive UK logistics network”.

These plans have now been put on hold following the CMA’s enforcement order under section 72(2) of the Enterprise Act 2002, served last Thursday (February 25).

The CMA must prove within 40 days whether the Beijer Ref UK businesses, combined, would command more than 25% of the UK market. In the meantime, Beijer Ref is prevented from proceeding with its rationalisation plans which include closing HRP’s administrative headquarters in Bury St Edmunds and moving its functions to Beijer Ref’s UK administrative hq in Leeds.

Beijer Ref UK md John Billson told the Cooling Post: “It is not uncommon for Beijer Ref AB to work with local merger authorities as part of an acquisition process. The acquisition of HRP is no different and Beijer Ref are working with the authorities in the UK to define our market position.

“We are comfortable and highly confident working within this process,” he added.

Related stories:

Beijer to restructure HRP to stem losses – February 1, 2016
UK: Beijer Ref has confirmed it is negotiating the closure of HRP’s Bury St Edmunds hq in an effort to stem company losses and protect the remaining branches. Read more…

Beijer Ref buys wholesaler HRP – November 18, 2015
UK: Swedish refrigeration wholesaling group Beijer Ref has confirmed its acquisition of the remaining shares in UK wholesaler HRP. Read more…

Latest news from the world of air conditioning and refrigeration

UK News

1st December, 2016


Stonegrove appoints Gowing

UK: Industrial refrigeration contractor Stonegrove Refrigeration has appointed Steve Gowing as design and project engineer.

1st December, 2016


Javac achieves Climate Center double

UK: Javac UK, the refrigerant recovery and vacuum pump supplier, has been named as Climate Centers’ Supplier of the Year for the second year running.

28th November, 2016


Ruskin renamed Swegon Air Management

UK: Ruskin Air Management has been renamed Swegon Air Management following its acquisition by the Swedish manufacturer Swegon.

25th November, 2016


SWEP to close Swiss plant

SWEDEN: Heat exchanger manufacturer SWEP is to close its manufacturing plant in Tentlingen, Switzerland, moving production to factories in Slovakia and Sweden.

World News

3rd December, 2016


Daikin Plzen plant is BES 6001 certified

BELGIUM: Daikin Europe’s factory in the Czech Republic has joined the group’s factory in Ostend by becoming certified to the BRE’s responsible sourcing standard.

3rd December, 2016


AHRI rises to chairman’s challenge

USA: Parker Hannifin and Daikin were the big winners in a unique competition designed to raise the level of awareness of the HVACR industry both in school and government.

3rd December, 2016


Beijer Ref merges Danish businesses

DENMARK: Refrigeration wholesaler Beijer Ref has merged two of its Danish companies to form Aircon Teknik A/S.

2nd December, 2016


Luvata HTS merged into Modine coil division

USA: The Luvata Heat Transfer Solutions business is to be amalgamated with Modine Coils into a new Modine Commercial and Industrial Solutions division.

Leave A Comment