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Competition watchdog to probe Interserve’s £250m Rentokil acquisition

The Competition and Markets Authority will probe Interserve’s acquisition of Rentokil’s Initial Facilities for £250m last month.

The Office of Fair Trading, which has now been replaced by the CMA, announced the call for evidence.

It said it is considering whether the merging of Rentokil’s facilities management business with Interserve’s Support Services arm could result in a substantial lessening of competition within the UK market.

It has invited written comments to be submitted by 14 April 2014.

An Interserve spokeswoman said the move was “essentially a routine process.”

She said: “We don’t believe the transaction will raise any competition concerns and we fully expect it to be cleared unconditionally at the phase 1 stage.

“We do not expect it to impact our long-term integration plans.”

The Initial Facilities acquisition was the latest in a series of acquisitions by Interserve, including its purchase of London specialist fit-out firm Paragon in 2013.

Subscribers:

This week, Construction News interviewed Interserve chief executive Adrian Ringrose about the company’s plans for growth.

Click here to read the full interview.

When the acquisition was announced in February, Interserve chief executive Adrian Ringrose said it would make the firm a top three player by revenue in the UK FM market.

He said at the time that the breadth and fit of the services the combined firms would offer, “added to the advantages of increased scale and potential synergies, will create a compelling proposition, leaving us well placed for future growth”.

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