Competition Appeal Tribunal judgement upholds CMA report in Ecolab/Holchem merger

23rd of April 2020
Competition Appeal Tribunal judgement upholds CMA report in Ecolab/Holchem merger

The Competition Appeal Tribunal (CAT) in the UK has upheld the decision by the Competition and Markets Authority (CMA) related to the merger between cleaning chemicals producers Ecolab and Holchem.

The CMA concluded that the only effective way of addressing the significant loss of competition as a result of the merger was to effectively block it by requiring Ecolab to sell off Holchem. Ecolab had appealed the decision.

A CMA spokesperson said: "The CMA is pleased the CAT today upheld the decision to require Ecolab to sell Holchem Laboratories, after the CMA found that the merger raised competition concerns in the cleaning chemicals industry in the UK.

"The tribunal rejected all of Ecolab's grounds of challenge and upheld the CMA's findings in its final report. The judgement confirms that the CMA can reject an alternative remedy put forward by the parties where the CMA does not have a high degree of confidence that the remedy will be effective in addressing its competition concerns.

"The judgement means that Ecolab must now continue with the sale of Holchem Laboratories to a purchaser approved by the CMA without any further delay."

Click here to read the final report

 

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