{"id":469554,"date":"2022-11-23T06:50:24","date_gmt":"2022-11-23T06:50:24","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=469554"},"modified":"2022-11-22T16:56:27","modified_gmt":"2022-11-22T16:56:27","slug":"competition-watchdog-closes-bouygues-equans-probe","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/financial\/ma\/competition-watchdog-closes-bouygues-equans-probe-23-11-2022\/","title":{"rendered":"Competition watchdog closes Bouygues-Equans probe"},"content":{"rendered":"

The\u00a0Competition and Markets Authority has closed its investigation into French industrial giant Bouygues\u2019 acquisition of construction-services firm Equans for \u20ac6.1bn. <\/span><\/p>\n

Bouygues agreed to acquire Equans from fellow French firm Engie<\/a> in November for an initial price of \u20ac6.5bn, which, when factoring in net debt, resulted in a final purchase price of \u20ac6.1bn. <\/span><\/p>\n

The merger was the largest acquisition in Bouygues\u2019 history and would see it become one of the world\u2019s leading multi-technical services firms. <\/span><\/p>\n

The deal was formally completed in October and the UK\u2019s competition\u2019s watchdog closed down its investigation into whether the merger would lead to unfair competition last week.<\/span><\/p>\n

The CMA launched its probe in July amid concerns that the merger might lead to a \u201clessening of competition\u201d within a specialist sector of the UK construction market.\u00a0<\/span><\/p>\n

Probing the potential for what is known as a \u2018substantial lessening of competition\u2019, the watchdog requested undertakings from both parties that competition would not be affected. It highlighted in particular work on HS2 as a cause for concern.<\/span><\/p>\n

Subsidiaries of both Bouygues and Equans were competing as two of the four bidders for HS2\u2019s \u00a3300m overhead-cable contract. In August, the parties<\/span> agreed to withdraw one of the bids<\/span><\/a>.\u00a0<\/span><\/p>\n

On 2 August, the CMA indicated that undertakings to withdraw one bid \u201cmight\u201d be accepted by the body as satisfying their concerns.\u00a0<\/span><\/p>\n

According to the latest CMA report, Bouygues and Equans agreed earlier this year to have an independent third party assess the bids submitted in the HS2 tender by Colas Rail and the Rapide joint venture to determine which of the bids was \u201cthe most economically advantageous to HS2 Ltd\u201d.\u00a0<\/span><\/p>\n

French firm Ingerop was employed to evaluate the bids, with both parties committing not to complete the merger transaction nor withdraw either of their bids until the objective third-party assessor had given notification of its assessment.<\/span><\/p>\n

This week, it was confirmed that the Rapide JV had been pulled from the tender process.<\/span><\/p>\n

The \u00a3300m overhead-cable contract will include additional design, manufacture, supply, installation and testing of overhead systems. It is expected to cover more than 360 miles of track.<\/span><\/p>\n

The CMA closed its case on 15 November.<\/span><\/p>\n

Commenting on the merger when it was completed in October, Bouygues chairman Martin Bouygues said: \u201cAcquiring Equans is a major milestone in the history of Bouygues.<\/span><\/p>\n

\u201cIt makes our group a global leader in multi-technical services and reinforces our resilience.<\/span><\/p>\n

\u201cOur businesses have in common that they are services businesses with a local footprint, run by dedicated and self-reliant teams of entrepreneurs and employees. I warmly welcome the 75,000 Equans employees who are joining our group.\u201d\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The\u00a0Competition and Markets Authority has closed its investigation into French industrial giant Bouygues\u2019 acquisition of construction-services firm Equans for \u20ac6.1bn. Bouygues agreed to acquire Equans from fellow French firm Engie in November for an initial price of \u20ac6.5bn, which, when factoring in net debt, resulted in a final purchase price of \u20ac6.1bn. The merger was …<\/p>\n","protected":false},"author":19441,"featured_media":458626,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[530,553],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\t\n\t\n\t\n