The Competition and Markets Authority has launched an investigation into the acquisition of TNT Business Solutions by Restore plc which was completed earlier this month.
TNT Business Solutions is a records management business that was owned by TNT UK, whose ultimate owner is now FedEx Corporation. The CMA is concerned that the take-over by Restore could lead of a lessening of competition in the market.
Restore agreed to pay £88 million for the TNT BS business which operates from five sites in the Midlands and the outskirts of London employing more than 250 people.
It said the acquisition would further strengthen Restore’s position in UK records management, particularly with public sector customers who represent the majority of TNT BS’s revenues.
Restore is also looking for operational and property synergies deriving from the Acquisition, as well as cross-selling opportunities.
Immediately following the deal, the CMA issued and enforcement order to ensure that the separation between the TNT BS and Restore businesses was maintained until it had completed its investigation.