The Competition and Markets Authority (CMA) has opened an investigation into the anticipated acquisition of Lincolnshire-based Calders & Grandidge by Scanpole.

The Competition and Markets Authority (CMA) has announced it is reviewing the merger timber merchant Calders & Grandidge and the UK subsidiary of Finish pole specialist Scanpole.

The commission will consider whether the move has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether it has resulted, or may be expected to result, in a substantial lessening of competition.

Founded in 1820, Calders & Grandidge, which has its head office and depot in Boston, Lincolnshire, specialises in the production of creosoted timber poles, railway sleepers, gates, and fencing. In March of this year, Saint Gobain announced the sale of the company (together with PDM in Ireland) to the Iivari Mononen Group, owner of Scanpole.

The divested assets, comprising two business units in Ireland and the UK, generated revenues of around £42 million in 2023 and employ 80 people. The sale of PDM was completed immediately, while that of Calders & Grandidge was expected to be completed by the end of 2024, subject to competition authority clearance.

To assist it with its assessment, the CMA is inviting comments on the transaction from any interested party by 20 August 2024.