April 12 (Reuters) - Britain’s competition watchdog warned on Friday that Rentokil Initial’s already completed takeover of Mitie’s pest control unit might restrict choice and lead to higher prices for customers.
“Having considered a wide range of evidence, it (CMA) has found there could be a substantial reduction in competition, which may lead to higher prices or reduced quality for customers,” the Competition and Markets Authority (CMA) said in a statement.
The CMA said the deal could lead to a substantial reduction in competition and asked British pest control and business services company Rentokil to offer proposals to address these concerns by April 23 or face an in-depth investigation.
Mitie last year sold the business to Rentokil for 40 million pounds ($52.25 million). ($1 = 0.7656 pounds) (Reporting by Noor Zainab Hussain in Bengaluru; editing by Patrick Graham)