BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - The Competition and Markets Authority, or CMA, announced the group of independent panel members investigating the merger of Rentokil's (RTO.L, RTOKY.PK) merger with Cannon Hygiene has published its final decision. The Panel found that the deal is likely to result in higher prices or a worse service for customers seeking a single supplier of waste disposal services at multiple locations across the whole or a large part of the UK.
To offset the loss of competition resulting from the merger, the CMA has decided Rentokil / Cannon must sell all contracts with customers that have premises nationally and across multiple regions, who were serviced by Cannon prior to the merger. These contracts will be sold to a different company to recreate the pre-existing competitive intensity for future national contracts.
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