LONDON (Nov. 9)—The United Kingdom's Competition Commission has cleared Duralay International Holdings Ltd.'s planned acquisition of Gates Consumer and Industrial, a division of Tomkins P.L.C. subsidiary Gates UK Ltd. The ruling follows a three-month investigation into the deal, which will give Duralay about 75 percent of the U.K. carpet underlay and gripper markets. Competition in these markets is sufficient to prevent the merged company from making significant prices increases or engaging in anti-competitive practices, according to a Nov. 9 commission ruling. Duralay was formed in 1996 by a management buyout of the underlay and related accessories business of the BBA Group. The company reported sales of $98 million and pre-tax profits of $6.6 million, in the year ended May 2000. The Dumfries, Scotland-based Gates division makes rubber products including carpet underlay, specialized flooring and footwear. The company's underlay products are made from rubber sponge, latex foam, crumb and felt, or polyurethane foam.
Government clears Duralay purchase of Gates business
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