UK CMA unconditionally clears Loxam/UKP merger in Phase I
The UK competition authority (CMA) has unconditionally cleared Loxam’s Nationwide Platforms (NWP) acquisition of HSS Hire Group’s UK Platforms (UKP). Both companies offer powered access equipment for hire, which are used by for example construction companies for high level access.
The CMA examined the transaction at a national and at a local level, where at the local level the CMA focused on a limited number of local areas where less competitors might be available. With CRA’s support the merging parties were able to persuade the CMA that no competition concerns would arise.
In addition to renting equipment to end-users the companies also supply equipment to competitors (‘cross-hiring’ arrangements). These activities are relatively minor and the merging parties would continue to offer these services post-merger.
CRA’s team supported the merging parties during the CMA’s proceedings with a local overlap analysis to show that on any basis there are sufficient competitors available near each of NWP’s and UKP’s current depots. This involved analysing local competition between the parties and their competitors based on disaggregated sales data. Said data was used to define catchment areas of each store, and to analyse the number of competitors present in around 40 depot locations. The CRA team consisted of Alan Overd, Gerhard Dijkstra, Angelos Stenimachitis and Mariam Arutyunyan.
Please see the CMA’s case page.