CCPC’s concerns over laundry-sector deal
A preliminary assessment from the competition watchdog has expressed concern about the effects of a proposed deal on the laundry sector in Ireland.
The Competition and Consumer Protection Commission (CCPC) has issued its findings on the proposed acquisition by Elis SA of OCL Laundry Services Limited.
Elis is active in Ireland through its wholly owned subsidiaries Elis Textile Services Limited and Berendsen Ireland Holdings Limited.
Both Elis and OCL are active in the supply of flat linen rental and maintenance services.
Concerns on higher prices
Their activities include the collection, sorting, washing, drying, and folding of products such as towels, bed sheets, pillowcases, and tablecloths for the hospitality sector.
Elis also supplies such services to hospitals and nursing homes.
The CCPC’s assessment sets out its provisional concerns that the proposed acquisition may substantially lessen competition in the provision of flat linen rental and maintenance services in the State.
The watchdog says that this could lead to higher prices, lower quality, and reduced innovation in the market.
Broader economy
It adds that the market’s importance for the hospitality sector means that it affects tourism and the broader economy.
The parties involved now have the right to respond in writing to the CCPC. The parties can also ask to make oral submissions and request access to the CCPC’s non-confidential file.
The competition body expects the full investigation to conclude no later than July.