WOLSELEY is set to complete the acquisition of Kooltech after an agreement in principle was reached with the Competition and Markets Authority (CMA).
The CMA previously found that the proposed merger between the two air conditioning and refrigeration wholesalers could mean less competition and choice for customers in Aberdeen. Both businesses have multiple branches, including one each in Aberdeen, and the concern was that limited competition could lead to higher prices and lower quality services, such as reduced availability of stock, for customers in the area.
The parties have now offered undertakings in lieu of a reference to the CMA, which involve the divestment of Kooltech’s branch in Aberdeen.
Jonathan Brown, commercial director at Kooltech, said, “Following our announcement last week, and subsequent positive engagement with the CMA, we are pleased to share that the CMA has agreed in principle that the disposal of Kooltech’s Aberdeen branch will allay its anti-trust concerns and allow Wolseley to complete the acquisition of Kooltech.
“We hoped not to lose anyone from the Kooltech family because of the sale process and we will be supporting the Aberdeen staff throughout as a priority. We will continue to work with the CMA, Wolseley and our advisors, to agree the detail to enable us to effect the Aberdeen disposal as soon as possible.”
