The government's 'Competition and Markets Authority (CMA)' body is looking into the recent Beijer Ref acquisition of air conditioning and refrigeration wholesaler HRP which has halted its further restructuring of the company.
The CMA is seeking to understand whether the situation creates a 'substantial lessening of competition in any market or markets in the United Kingdom (UK)'. The CMA action means that Beijer Ref has had to stop its plans to bring HRP back into profitability.
Nevertheless, the CMA decided that it needed to determine whether Beijer ref's acquisition of HRP would be anti-competitive for the market.
The ACR Journal contacted Beijer Ref UK managing director, John Billson about the CMA action:
“We are relaxed about the CMA's concerns about how much market share Beijer Ref will have in the UK after buying HRP. We are confident that, in fact, buying HRP will make the market more competitive, rather than less.”
“HRP needs a substantial amount of investment to bring it back into profitability and we have the resources and expertise to do that. HRP branch staff will still be serving their customers as well as they have always done. Our plan is to make it even easier for HRP customers to buy from us because they will benefit from the buying power we have.”