The Competition and Markets Authority has closed its investigation into French industrial giant Bouygues’ acquisition of construction-services firm Equans for €6.1bn.
Bouygues agreed to acquire Equans from fellow French firm Engie in November for an initial price of €6.5bn, which, when factoring in net debt, resulted in a final purchase price of €6.1bn.
The merger was the largest acquisition in Bouygues’ history and would see it become one of the world’s leading multi-technical services firms.
Related: UK Watchdog OKs Bouygues & Equans Merger
The deal was formally completed in October and the UK’s competition’s watchdog closed down its investigation into whether the merger would lead to unfair competition last week.
The CMA launched its probe in July amid concerns that the merger might lead to a “lessening of competition” within a specialist sector of the UK construction market.
Probing the potential for what is known as a ‘substantial lessening of competition’, the watchdog requested undertakings from both parties that competition would not be affected. It highlighted in particular work on HS2 as a cause for concern.
Subsidiaries of both Bouygues and Equans were competing as two of the four bidders for HS2’s £300m overhead-cable contract. In August, the parties agreed to withdraw one of the bids.
On 2 August, the CMA indicated that undertakings to withdraw one bid “might” be accepted by the body as satisfying their concerns.
According to the latest CMA report, Bouygues and Equans agreed earlier this year to have an independent third party assess the bids submitted in the HS2 tender by Colas Rail and the Rapide joint venture to determine which of the bids was “the most economically advantageous to HS2 Ltd”.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI