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CMA smells a rat with Rentokil-Mitie pest control deal

Fri 12 October 2018 12:38 | A A A

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(Sharecast News) - Competition authorities have launched an investigation into Rentokil Initial's completed acquisition of Mitie's pest control business.

Rentokil bought Mitie Pest Control for £40m cash on 1 October, with a preferred supplier partnership agreed where Rentokil will provide a range of services as part of an integrated facilities management offering to Mitie's customers.

The Competition and Markets Authority said it had served an initial enforcement order on Rentokil on 9 October.

Under the order, the CMA said it was considering whether the merger of Rentokil's pest control business with Mitie's "has resulted or may be expected to result in a substantial lessening of competition".

Mitie has subsequently splashed £14m of cash to acquire Vision Security Group from catering specialist Compass Group.

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