Washroom suppliers’ merger may raise competition concerns
The CMA has found Rentokil’s purchase of Cannon Hygiene may lead to higher prices and lower quality for businesses buying products and services for washrooms.
Rentokil, which trades as Initial for these services, and Cannon are 2 of the 3 largest specialist providers of products and services found in washrooms across the UK. These firms install and maintain equipment such as air sanitisers, feminine hygiene units, nappy bins and soap dispensers, in all types of commercial, industrial and public buildings.
The Competition and Markets Authority (CMA) has found that, if the merger goes ahead, the companies could face very limited competition from other suppliers of washroom products and services.
Rentokil and Cannon have until 25 June to offer a solution to the CMA’s concerns, otherwise the merger will be referred for a more in-depth (phase 2) investigation.
More information can be found on the Rentokil / Cannon case page.