Laundry-sector deal off after CCPC probe
A deal in the laundry sector has fallen through after proposals from the parties involved failed to address competition concerns.
In March, a preliminary assessment from the competition watchdog expressed concerns about Elis SA’s proposed acquisition of OCL Laundry Services Limited.
Elis has now withdrawn its proposal to acquire OCL. Both companies are involved in the supply of flat linen rental and maintenance services.
Their activities include the collection, sorting, washing, drying, and folding of products such as towels, bed sheets, pillowcases, and tablecloths for the hospitality sector.
Tourism impact
The Competition and Consumer Protection Commission (CCPC) had set out provisional concerns that the proposed acquisition might substantially lessen competition in the provision of flat linen rental and maintenance services in the State.
It had also pointed out that the market’s importance for the hospitality sector meant that it affected tourism and the broader economy.
CCPC member Geoffrey Gray said that the body’s review had identified “significant concerns” that the merger could lead to higher prices, lower quality, and reduced innovation in the flat linen rental and maintenance market.
“The remedies proposed by the parties were also not sufficient to adequately address these concerns. The transaction has now been abandoned, which ensures competition, tourism, and the Irish economy are not harmed,” he added.