OFT approves Jewson acquisition of Build Center

The Office of Fair Trading (OFT) has accepted undertakings offered by Jewson owner the Saint-Gobain group to address the competition concerns arising from its completed acquisition of Build Center.

As a result, the merger will not be referred to the Competition Commission.

The OFT reached its final decision after considering responses to consultation.

The undertakings require Jewson to sell 23 builders merchant stores in 22 local areas to resolve the competition concerns identified by the OFT during its investigation into the merger.

The OFT must approve purchasers before they can buy any of the stores. It will assess the suitability of purchasers in each local area to ensure that they are capable of providing sufficient competition to the merged Jewson and Build Center business and other builders merchants in the area.

“The OFT was concerned that builders and other tradesmen would see an increase in prices for building materials as a result of this merger in a number of local areas,” said Ali Nikpay, senior OFT director. “We are satisfied that the divestments offered by Jewson will remedy these concerns and restore pre-merger competition.”