Yorkshire Purchasing Organisation (YPO) has abandoned its proposed deal with Findel Education after the Competition and Markets Authority published provisional findings outlining its concerns about the merger last month.
YPO and Findel Education are two of the main suppliers of educational resources in the UK, supplying stationery, furniture, and art and science materials to educational institutions, such as schools and nurseries. YPO announced its planned £50 million purchase of Findel last year.
Following the decision, the CMA confirmed it is cancelling its investigation into the potential competition concerns raised by the merger. It had been carrying out an in-depth Phase 2 investigation and, last month, provisionally found that the merger was likely to leave educational institutions worse off with fewer alternative suppliers and worse terms when purchasing resources.
The CMA’s initial view was that blocking YPO’s purchase of Findel was likely to be an effective remedy to the concerns identified.
Date published: 3 November 2020