As reported by us last December, Yorkshire Purchasing Organisation (YPO) had planned to acquire its competitor Findel Education in a deal worth £50 million.
This was referred to the Competition and Markets Authority (CMA) which has determined that the move could reduce competition resulting in increased prices or reductions in service levels, quality and the range of products offered by the merged company. The CMA also provisionally found that competition from smaller, specialist and online-only suppliers was more limited.
Stuart McIntosh, inquiry group chairman said: “These two firms are two of the leading suppliers of educational resources in the UK, so it’s important that the CMA protects schools and nurseries who rely on their products. The loss of competition as a result of this merger would likely lead to either higher prices or reduced service, and less choice for schools, which are already under considerable financial pressure”.
Interested parties have until October 3oth to submit views on possible remedies to address the CMA’s concerns which may include blocking the deal.
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