The Competition and Markets Authority (CMA) has referred the anticipated acquisition by Carpenter Co of the engineered foams business of Recticel NV/SA for an in-depth 'Phase 2' investigation.
The CMA’s initial investigation found that the merger would remove a close competitor of Carpenter’s, with the firms representing two of just three foam producers (alongside The Vita Group) with plants in the UK. The CMA is concerned that, if the deal goes ahead, the combined companies will face limited competition in the UK in three foam-related markets.
The firms now face an in-depth Phase 2 investigation, on the basis that, "on the information currently available to it, it is or may be the case that this merger has resulted or may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom."
US-based Carpenter agreed to buy Belgian firm Recticel’s global engineered foams business in a €656m deal announced in 2021. The firms both make flexible PU foam used in the manufacture of products including mattresses. They also produce processed foam (converted foam). Both companies own and operate plants in the UK.
The text of the decision will be published in due course.
For more information, visit the Carpenter/Recticel merger inquiry page, or see related.
