CMA says Rentokil's Cannon Hygiene acquisition raises concerns

The Competition and Markets Authority said on Monday that Rentokil's proposed merger with Cannon Hygiene could raise competition concerns.

The regulator said the merger could lead to a "substantial lessening" of competition. As a result, it will be referred for a phase 2 investigation unless both companies are able to address its competition concerns.

The CMA pointed out that Rentokil and Cannon - which install and maintain equipment such as air sanitisers, feminine hygiene units and soap dispensers - are two of the three largest specialist providers of products and services found in washrooms across the UK.

"The Competition and Markets Authority (CMA) has found that, if the merger goes ahead, the companies could face very limited competition from other suppliers of washroom products and services."

The companies have until 25 June to offer a solution to the CMA's concerns.

At 0811 BST, the shares were up 0.2% to 350.90p.