The Competition and Markets Authority (CMA) has launched a merger inquiry into the anticipated acquisition by Scanpole Ltd of Calders & Grandidge (Boston) Ltd.
Sain-Gobain signed a binding agreement for the sale of its treated timber products (utility poles, fencing and railway sleepers) manufacturing brands including Calders & Grandidge to the Livari Mononen Group (which operates the Scanpole business) in April.
The CMA announced is merger inquiry on June 25 with an invitation for comments to be made until July 10.
“The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this merger has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services,” the CMA statement said.
A phase one decision will be made by August 20.
Saint-Gobain has already divested PDM in Ireland as part of the deal. The divested assets (PDM & Calders & Grandidge) comprise two business units in Ireland and the UK, generated revenues of €50m in 2023 and employ 80 people.
The divestment of PDM has been completed, and the sale of Calders & Grandidge was expected to be completed by the end of 2024, subject to competition authority clearance.
The Scanpole business is a leading producer of wooden poles in Europe. The long-lasting poles are used in electrical grids, lighting networks and other infrastructure projects on all continents.
Scanpole also supplies premium quality fencing posts for a wide range of agricultural and equestrian uses and has operations in Finland, Norway, Sweden and the UK, the latter at Alexandra Dock, Newport.
