Ecolab "Reviewing" UK Competition Authority Decision
Ecolab has announced it is reviewing the decision of the United Kingdom's Competition and Markets Authority (CMA) to oppose its 2018 acquisition of Holchem on anti-competitive grounds.
Commenting on the decision of the CMA to order Holchem's divestment on the grounds the merger may result in a substantial lessening of competition in the UK and lead to an increase in prices, as well as a lowering of the quality of products and/or service for customers in the food and beverage industry, Douglas M. Baker, Jr., Ecolab’s chairman and chief executive officer said:
"We strongly believe that the UK market would remain highly competitive following the merger and are disappointed with the CMA’s findings. We are reviewing the full report provided by the CMA in detail and will carefully consider our options and next steps. We will continue to do what is right for our customers and associates, and to expand our ability to bring the latest technologies and the highest food safety standards to the food and beverage industry."
Holchem operates in the UK and Ireland, with sales that were approximately £43 million ($56 million) at the time of the announcement.