Regulator to look at proposed facilities management deal

Mitie’s proposed £271m deal to acquire Interserve’s facility management business is to be looked at by the Competition and Markets Authority (CMA).

Earlier this year, Mitie revealed it had signed a share purchase agreement for the purchase of the Interserve FM business.

In the year to 31 December 2019, Interserve Facilities Management posted revenue of £1.38bn alongside operating profit of £38m.

Speaking at the time, Phil Bentley, Mitie group chief executive, said it was a “transformative acquisition” which would create the UK’s largest facilities management company with more than 77,500 employees.

Now, the CMA has said it is investigating the anticipated acquisition to discover whether it believes the deal will lessen competition in the facilities management marketplace.

Interested parties have until 29 September to comment on the deal.

A spokesperson for Mitie said: “The transaction was voluntarily referred to CMA for clearance and we are working closely with the CMA to progress the process.”