The Competition and Markets Authority (CMA) has conducted a Phase 1 investigation into the proposed merger between Wolseley UK Limited and Kooltech Limited, finding potential competition issues that could adversely affect customers in Aberdeen.

Both Wolseley and Kooltech are significant suppliers of air conditioning (AC) and refrigeration products across the UK, with branches in Aberdeen that cater to local customers. The CMA's investigation revealed that the merger would eliminate the only two wholesalers of these products in the area, leading to concerns about increased prices and reduced service quality for local consumers.

Colin Raftery, CMA Senior Director of Mergers, emphasized the importance of local access to these products, stating that the merger would significantly diminish competition in Aberdeen. While most customers across the UK may not be affected, those in Aberdeen could face challenges such as higher costs and limited stock availability.

Wolseley and Kooltech have five working days to propose solutions to the CMA's concerns. The CMA will then have an additional five days to evaluate these proposals before deciding whether to proceed with a Phase 2 investigation.