Vp PLC (LON:VP) has said it will fully assist the UK Competition & Markets Authority as it investigates the equipment rental firm‘s acquisition of rival Brandon Hire Group Holdings Ltd.
In a statement confirming the CMA investigation, Vp said it conducted a "detailed" due diligence exercise before the acquisition which included assessing potential competition considerations.
The company said it will provide further updates to the market when appropriate.
Acquisition to deliver economies of scale
Vp announced the £416mln acquisition of Brandon on November 8 to be funded by cash from new banking facilities, as well as the assumption of £27.2mln worth of net debt
The group said at the time that the acquisition will deliver economies of scale in purchasing and operations over the medium term.
On November 21, Vp unveiled its first half results which showed a jump in pretax profit to £20.3mln, up from £17.7mln a year earlier as revenue rose to £136.0mln from £121.7mln, with the interim dividend increased by 13% to 6.80p.