Merger Update: Wolseley / Kooltech

Consultation on undertakings in lieu: Anticipated acquisition by Wolseley UK Limited of Kooltech Limited

The Competition and Markets Authority (CMA) has opened a consultation on undertakings in lieu of reference offered by the Parties to address competition concerns identified by the CMA over the anticipated acquisition of Kooltech Limited (Kooltech) by Wolseley UK Limited (Wolseley) (the Merger).

On 23 November 2023, the CMA announced that it would refer the Merger for an in-depth, Phase 2 investigation unless the Parties offered acceptable undertakings in lieu to address the CMA's concerns.

To address the CMA's concerns, the Parties has offered to divest Kooltech's branch in Aberdeen to an upfront buyer approved by the CMA before the CMA finally accepts the Proposed Undertakings.

On 7 December 2003, the CMA announced that it would look in detail at these offered undertakings in lieu. The CMA has until 6 February 2024 to consider whether to accept the undertakings in lieu, or a modified version of them. As part of this process, the CMA is now consulting publicly on whether the proposal is sufficient to address the competition concerns identified by the CMA.

Before reaching a final decision, the CMA is therefore inviting interested parties to make their views known. The deadline for responses is 30 January 2024.

The consultation on the offered undertakings in lieu and all other information relating to this merger investigation can be found on the dedicated case page on the CMA's website at Wolseley/Kooltech merger inquiry - GOV.UK (www.gov.uk).

In the event of media enquiries please email press@cma.gov.uk.