Cleanzine: your weekly cleaning and hygiene industry newsletter 18th April 2024 Issue no. 1110
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Mitie / Interserve merger investigation launched by CMA
The Competition & Markets Authority has opened an investigation into the anticipated acquisition by Mitie Group of Interserve FM (Holdings), which was announced in June of this year and was expected to complete by the year end.
The CMA is considering whether the merger will result in a substantial lessening of competition for goods or services in the sector and has invited comment from interested parties.
Evenly balanced between the public and private sectors, the organisation – once merged - would be the largest FM company in the UK, employing over 77,500 people. Interserve's expertise in delivering frontline critical public services together with Mitie's pedigree in delivering technical and business services to the private sector would enable the two to share best practice, innovation and technology to the benefit of their combined extensive customer portfolio.
The Board of Interserve Group believes that the proposed merger will create a larger and stronger UK FM business and is highly attractive to its stakeholders, including its employees, customers, partners and shareholders.
"The proposed combination of Interserve Support Services with Mitie will create the UK's leading facilities management company, with strong prospects in both the public and private sectors providing significant opportunities to employees, customers, and shareholders alike,” said Interserve Group chairman Alan Lovell at the time of the announcement.
"The transaction, which is consistent with our stated strategy of realising value for our shareholders, will reduce the Group's debts, enable a paydown to our shareholders and stabilise the Group's financial position through a retention of a proportion of the proceeds.
"It will leave Interserve as a focused Group executing clear business plans in Interserve Construction and RMD Kwikform, as well as our Citizen Services portfolio of businesses.”
Interested parties should send their comments before the 29th September 2020 deadline to:
www.interserve.com / www.mitie.com
17th September 2020