Shares in equipment hire group VP (VP.) dipped this week after the group announced that the Competition and Markets Authority (CMA) is investigating the acquisition of Brandon Hire Group, which VP completed in early November.
IC TIP:
Hold
at
870p
The group said it had completed a full due-diligence exercise prior to completion of the acquisition, including an assessment of competition. It added that it would fully assist the CMA with the enquiry.
The CMA issued an Initial Enforcement Order on Friday of last week. These are issued where it has grounds to believe there may be a “substantial lessening of competition” in the UK market. It prohibits the companies from continuing with the merger process and precedes the opening of an official investigation.
