CC set to clear roofline products merger
8 Oct 2012
The Competition Commission (CC) has provisionally cleared the completed acquisition by Epwin Holdings Limited (Epwin) of Building Plastics Holdings Limited, CET Glass Processors Holdings Limited and Latium Building Products Holdings Limited (Latium).
The companies supply a wide range of PVC building products and we have looked closely at the overlap between Epwin and Latium in the supply of PVC roofline and window-trim products, used in the construction of new houses and refurbishment of existing properties.
Our inquiry looked at the likely effect of the merger on both smaller customers, who buy the products ‘over the counter’ from stockists, as well as larger customers, such as house builders and contractors, who generally have agreements with manufacturers to supply specified products through stockists.
The Chairman of the Epwin/Latium Inquiry Group and CC Deputy Chairman, Simon Polito, said:
‘Customers in this market are used to negotiating for the best price, so it is important that they continue to be able to do so after the merger.
‘We found that it is relatively simple for customers to switch between suppliers and that competing suppliers have enough spare capacity to respond if large numbers of customers want to switch away from the merged company.
‘Customers will therefore still have the option of going elsewhere when buying products and this continuing competition should prevent Epwin/Latium from using the merger as an opportunity to raise prices or reduce quality or choice in this market.’
The CC is expected to publish its final report by 2 December 2012.
A summary of the provisional findings is available on the inquiry home page along with all other information relating to the investigation. The full provisional findings report will be published shortly.
Any interested party is invited to respond to the provisional findings, in writing, by no later than 30 October 2012. To submit evidence, please email Epwin-Latium@cc.gsi.gov.uk or write to:
Inquiry Manager
Epwin/Latium inquiry
Competition Commission
Victoria House
Southampton Row
LONDON
WC1B 4AD
Notes for editors
1. The CC is an independent public body, which carries out investigations into mergers, markets and the regulated industries.
2. The members of the Epwin/Latium Inquiry Group are: Simon Polito (Chairman of the Group and CC Deputy Chairman), Richard Farrant, John Smith and Professor Sudi Sudarsanam.
3. The Enterprise Act 2002 empowers the Office of Fair Trading to refer to the CC completed or proposed mergers for investigation and report which create or enhance a 25 per cent share of supply in the UK (or a substantial part thereof) or where the UK turnover associated with the enterprise being acquired is over £70 million.
4. The CC has a 24-week period in which it is required to publish its report, which may be extended by no more than eight weeks if it considers that there are special reasons why the report cannot be published within that period.
5. Further information on this inquiry, including the terms of reference and other key documents, as well as on the CC and its procedures, including its policy on the provision of information and the disclosure of evidence, can be obtained from the CC website at: www.competition-commission.org.uk.
6. Enquiries should be directed to Rory Taylor or Siobhan Allen or by ringing 020 7271 0242.
