Competition watchdog launches probe into merger between Cambian and Caretech
The competition watchdog has launched an inquiry into the £375m buyout of children services provider Cambian Group by social care firm Caretech.
An initial enforcement order, published today, prevents the companies from taking any further steps in the merger process that could affect later stages of the investigation.
The businesses must stay separate and distinct during the process and maintain individual brand identities, the notice said, and must be maintained as going concerns with sufficient resources.
Speaking when the terms of the merger were revealed in August Cambian chairman Christopher Kemball said: "While the Cambian Board feels that the business already had a promising future as the largest independent provider of childcare, this transaction represents an attractive proposition for Cambian shareholders and broader stakeholders.
"Like Cambian, CareTech has an excellent reputation for the quality of its specialist education and behavioural health services as evidenced by CQC and Ofsted ratings ahead of sector averages. This should ensure that the children currently in Cambian's care will be well cared for."