UK: The acquisition of air conditioning equipment distributor Kooltech by wholesaler Wolseley is being investigated by the UK Competition and Markets Authority (CMA).
Announced in January, the proposed acquisition would add Kooltech’s eight branches, wide air conditioning and refrigeration product portfolio and knowledge to the huge 560-branch Wolseley builders’ merchant operation.
In a statement, the CMA said it 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”.
The CMA is inviting comments on the transaction from interested parties.
Wolseley said it was unable to comment on the current investigation due to the ongoing review process, but at the time of the acquisition announcement, Wolseley Group chief executive Simon Oakland said: “Wolseley is continuing to bring together the UK’s best in our aim to be the most complete specialist provider of plumbing, heating, cooling and infrastructure products. Kooltech joining our group will enable us to extend our offer to customers further across the sector and create new opportunities for Kooltech as part of a broader business.”
The deal was originally expected to be completed in the middle of this year.