Carpenter seeks majority sale of Recticel's UK arm to ease competition concerns

LONDON, Sept 28 (Reuters) - U.S. mattress foam producer Carpenter has proposed a partial sale of Recticel's UK arm to secure regulatory approval for its merger with the Belgian company, the Competition and Markets Authority (CMA) said in a statement on Wednesday.

US-based Carpenter agreed to buy Belgian firm Recticel's global engineered foams business in a 656 million euro ($627.6 million) deal announced in 2021.

"The firms accept that the merger could reduce competition in the markets where we've raised concerns," Kip Meek, Independent CMA Panel Chair, said in a statement.

"This could lead to higher costs for UK manufacturers and mean people may get a worse deal when buying beds and sofas, as well as everyday items like kitchen sponges."

The CMA said it will focus on assessing whether this partial sale will fully replace the loss of competition arising from the merger. ($1 = 1.0453 euros) (Reporting by Andres Gonzalez, editing by Sinead Cruise)