OFT refers SitexOrbis Holdings acquisition to CC
VPS' purchase of SiteOrbis has been referred to the CC.
VPS Holdings may still need negotiation techniques, as its completed acquisition of SitexOrbis Holdings has been referred to the Competition Commission (CC) by the Office of Fair Trading (OFT).
The government body is concerned the deal could damage the UK's market for security services in empty buildings.
SitexOrbis and VPS are the country's largest two suppliers to this sector, providing doors, alarms and steel screens, so the OFT warned combining the entities could reduce choice or increase prices.
The CC is forecast to report on this issue by August 19th 2012.
OFT decision maker in this case and senior director Ali Nikpay said: "Our own investigation showed that the merger would be likely to lead to the loss of the existing strong competition between the parties in supplying these services to local authorities and businesses."
If the CC approves the merger, the VPS Group will manage 90,000 properties and have a turnover of around £200 million.
The firm claimed it will still be committed to delivering its customers with exceptional value and quality.
Posted by Ron Maverick
Source: OFY press release, March 5th