British Furniture Manufacturers

Opportunity to give your view on proposed merger of Carpenter and Recticel

12 May 2022

Opportunity to give your view on proposed merger of Carpenter and Recticel

On 5th May 2022, the Competition and Markets Authority (CMA) launched an investigation into the anticipated acquisition by Carpenter Co. of the engineered foams business of Recticel NV/SA.  Commencement notice. The deadline for submitting comments is very short; 19 May 2022:

‘The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services. To assist it with this assessment, the CMA invites comments on the transaction from any interested party. These comments should be provided by the deadline set out above’.

Please send written representations about any competition issues to: Rafia Saif, Principal Case Officer, Rafia.Saif@cma.gov.uk.

The BFM will send its own comments which will highlight concerns at a further lessening of competition in polyurethane foam market, which is currently dominated by just a few big players.   

We will also draw the CMA’s attention to fines issued in 2014 by the EU for operating a cartel - Commission fines producers of foam for mattresses, sofas and car seats € 114 million in cartel settlement. Also see here for more detail:   CASE AT.39801 — Polyurethane foam.  Nor was the issue confined to the EU.  Litigation was launched in the USA and Canada.  For example - Flex Foam cartel settlement is less than a third of claim value | Urethanes Technology International (utech-polyurethane.com).

BFM contact: info@bfm.org.uk.

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