Proactive Investors - Run By Investors For Investors

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.

View full RTO profile View Profile

Rentokil Initial Timeline

Related Articles

Stobart
May 31 2019
"Stobart Group has a clear focus on developing infrastructure assets in the aviation and energy sectors," chief executive Warwick Brady said.
drill rig
June 27 2019
Fleet numbers around 91 rigs currently, which the company estimates is among the youngest in the industry.
Interviewees
August 07 2018
The offer values Nash at £98.7mln and DBAY already controls 26.1% of Harvey Nash shares

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use