Educational suppliers quit merger after CMA concerns

Yorkshire Purchasing Organisation (YPO) has abandoned its proposed deal with Findel following an investigation from the Competition and Markets Authority (CMA) which found the merger was likely to leave educational institutions worse off.

The Competition and Markets Authority (CMA) has will therefore cancel its investigation into the potential competition concerns that could be raised by the merger.

YPO and Findel Education Limited (Findel) are two of the leading suppliers of educational resources in the UK supplying stationery, furniture, and art and science materials to educational institutions, such as schools and nurseries. YPO announced its planned £50 million purchase of Findel last year.

The CMA had been carrying out an in-depth Phase 2 investigation and, last month, provisionally found that the merger was likely to leave educational institutions worse off with fewer alternative suppliers and worse terms when purchasing resources. The CMA’s initial view was that blocking YPO’s purchase of Findel was likely to be an effective remedy to the concerns identified.

YPO has now decided to abandon the deal and so the CMA will be cancelling its investigation.