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Rentokil and Mitie kept waiting over pest control deal

Competition and Markets Authority wants another two months to sniff over the deal

rats
The pair agreed to merge their two pest control businesses back in October last year

Competition regulators wants more time to probe the acquisition of Mitie Group PLC’s (LON:MTO) pest control business by Rentokil Initial PLC (LON:RTO).

The Competition and Markets Authority, having said it would make a decision on the deal by 27 June, said it still was likely that it will be able to accept an altered form of the deal.

READ: Watchdog says it may allow Rentokil to snap up Mitie Pest Control

This period was to allow the watchdog to decide whether to accept undertakings offered by Rentokil designed to allay concerns about a potential reduction in competition.

In April, the CMA said it felt there were “reasonable grounds” to believe that Rentokil’s proposed changes, or a modified version of them, "might be accepted" as a remedy.

It was “not possible” to make a decision so far, the CMA said, because the undertaking has been made by an upfront buyer and so there were “special reasons” for an extension to 22 August.

“The CMA also considers that this extension does not materially increase the risk of an anti-competitive outcome from the merger and that there is a sufficient likelihood that it will be able to accept the undertaking before the end of the extended period.”

If it does not accept the undertakings, then the body would need to conduct an in-depth phase 2 investigation into the deal.

Quick facts: Rentokil Initial

Price: 441.1 GBX

LSE:RTO
Market: LSE
Market Cap: £81.13 m
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