Merger Update: Carpenter Co. / Recticel NV/SA

Merger reference decision announced:

On 4 July 2022, the CMA decided that it was or may be the case that the following Merger has resulted or may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom.

Anticipated acquisition by Carpenter Co. of the engineered foams business of Recticel NV/SA

Pursuant to section 73A(1) of the Act, on 11 July 2022, the Parties offered undertakings to the CMA for the purposes of section 73(2) of the Enterprise Act 2002 (the Act).

Following assessment of the undertakings, the CMA considers that the undertakings offered by the Parties are not a clear-cut solution to the competition concerns identified as arising from the Merger. Accordingly, the CMA has decided not to exercise its discretion under section 73(2) of the Act to accept undertakings in lieu of reference. Therefore, pursuant to sections 33(1) and 34ZA(2) of the Act, the CMA has decided to refer the Merger to its chair for the constitution of a group under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 to conduct a phase 2 investigation.

The text of this decision will be placed on the Competition and Markets Authority's website at https://www.gov.uk/cma-cases as soon as is reasonably practicable.

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