Bid for Telford galvanising firm facing probe
The competition watchdog has flagged up concerns over the £10.5 million takeover of Telford galvanising firm W Corbett & Co by Black Country rival Joseph Ash, part of the Hill & Smith Holdings group.
Joseph Ash has until Wednesday to satisfy the concerns of the Competition and Markets Authority or face a potentially lengthy inquiry.
Parent company Hill & Smith said it was "carefully considering" the CMA's announcement and would issue its own further announcement "in due course".
Galvanising is the process of protecting steel from corrosion with a zinc coating.
The CMA said it had received concerns from customers that the deal would lessen competition and lead to higher prices.
Andrea Coscelli, from the CMA, said: "We are concerned to preserve the existing level of competition in the West Midlands region where Joseph Ash and W Corbett currently compete."