Mitie Group PLC (LSE:MTO) shares plunged after the UK competition watchdog said it was investigating the outsourcing group's bids for services at immigration centres in Heathrow and Derwentside.
The Competition and Markets Authority said on Friday that it launched an investigation into Mitie earlier this week for "breaches of competition law in relation to an ongoing process run by the UK government to procure services" at the two 'Immigration Removal Centres'.
Mitie shares fell more than 10% to 47.47p this morning following the announcement.
“No assumption should be made at this stage that the CA98 has been infringed,” the CMA said
“The CMA has not reached a view as to whether there is sufficient evidence of an infringement of competition law for it to issue a statement of objections to any of the parties under investigation.”
In a statement in response to the announcement, Mitie said it withdrew from the Derwentside IRC without submitting a bid due to the Home Office’s ‘Lotting’ conditions, and that it remains engaged in the Heathrow tender process.
“Mitie strongly condemns anti-competitive practices and is co-operating fully with the CMA and the investigation. Mitie is confident that it has no case to answer and will be fully exonerated,” the group said.
“Mitie will not be issuing any further announcements in relation to the CMA's investigation, until its conclusion.”