Thursday 22 August 2019 4:03 pm

Rentokil buyout of Mitie pest control business given green light by regulator

Rentokil’s bid to hive off parts of its newly-acquired pest control business from Mitie so as to assuage competition concerns has been accepted by regulators.

The Competition and Markets Authority (CMA) has given the deal its blessing, as long as Rentokil sells the majority of the majority of the business that used to be called Mitie Pest Control Limited to Servicemaster. This includes most employees, national customer contracts and premises.

The CMA said it would not refer the deal to an in-depth investigation, after announcing an initial probe in May.

The £40m acquisition went ahead before the CMA, but the regulator imposed an order on Rentokil meaning it must halt any more integration of the businesses, effectively keeping them separate.

Rentokil, which is Britain’s biggest pest control specialist, and is listed on the FTSE 100. It employs around 36,000 people.

Main image: Getty