Kooltech to dispose of Aberdeen branch to pave way for acquisition by Wolseley

Kooltech to dispose of Aberdeen branch to pave way for acquisition by Wolseley

Kooltech is set to complete its acquisition by Wolseley after agreeing to dispose of its Aberdeen store amid competition concerns.

Wolseley signed an agreement to acquire the air conditioning specialist back in January. Headquartered in Glasgow, family-owned Kooltech employs more than 100 people across seven locations, servicing trade professionals across the climate/cooling/air conditioning sector.

However, the Competition and Markets Authority (CMA) warned that the proposed merger could mean less competition and choice for customers, highlighting Aberdeen as a particular area of concern.

Following a Phase 1 investigation, the UK competition watchdog provisionally found that the deal raises competition concerns in the city – potentially leaving customers to face higher prices or lower quality services.

Both businesses have multiple branches, including one each in Aberdeen, which are particularly important for customers with urgent demands or who prefer collecting in-store.

The CMA has now agreed in principle to the acquisition if the Aberdeen store is sold beforehand.

Speaking about the new agreement in principle, Jonathan Brown, commercial director from Kooltech, said: “Following our announcement last week, and subsequent positive engagement with the CMA, we are pleased to share that the CMA has agreed in principle that the disposal of Kooltech’s Aberdeen branch will allay its antitrust concerns and allow Wolseley to complete the acquisition of Kooltech.

“We hoped not to lose anyone from the Kooltech family because of the sale process and we will be supporting the Aberdeen staff throughout as a priority.

“We will continue to work with the CMA, Wolseley and our advisors, to agree the detail to enable us to effect the Aberdeen disposal as soon as possible.”

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