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Mitie, Interserve deal piques interest of competition authority
Posted on Tuesday, 15 September 2020 14:22
The UK’s Competition and Markets Authority is casting its eye over the planned acquisition of Interserve’s facilities business by Mitie could have an adverse effect on competition in the industry.
Reuters cited a spokesperson for the buyer as saying the transaction had been voluntarily referred to the regulator for clearance; it has now invited any interested parties to offer comments by 29th September.
At this point, it is not clear when a final decision on the matter can be expected.
Mitie agreed to acquire Interserve’s facilities management arm for GBP 271.00 million back in June, saying the move would create the UK’s leading facilities management firm.
Reporting on the CMA’s decision to intervene, Reuters said the transaction would lead to a 50.0 per cent increase in Mitie’s sales.
Interserve describes itself as one of the world’s foremost support services and construction companies.
The firm has a history dating back to 1884 and a customer base numbering more than 7,500 and spanning 40 countries.
It employs about 53,300 people worldwide, but went into administration in March 2019 after Coltrane, its largest shareholder, refused to back a rescue plan which had been proposed by lenders.
There have been 35 deals targeting facilities support services providers announced worldwide during 2020, the largest of which is valued at USD 204.44 million, according to Zephyr, the M&A database published by Bureau van Dijk.
That transaction took the form of a capital increase and also featured Mitie as the firm unveiled a rights issue, some of the proceeds of which have been earmarked for financing of the Interserve acquisition.
Other companies in the sector to have been targeted this year include the likes of Spotless Group Holdings, Sicura and Sodexo.
© Zephus Ltd