08 December 2023
Wholesaler Wolseley is expected to complete the acquisition of air conditioning, refrigeration and heat pump distributor Kooltech after an agreement in principle was reached with the Competition and Markets Authority (CMA).
The CMA had previously raised concerns that customers in Aberdeen, where both companies currently have a branch, could potentially face higher prices or lower quality services. The new agreement in principle would see the divestment of Kooltech's Aberdeen branch.
Jonathan Brown, Commercial Director of 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 antitrust 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.”
The CMA said it "considers that there are reasonable grounds for believing that the undertakings offered by the Parties, or a modified version of them, might be accepted by the CMA under the Enterprise Act''.