Competition watchdog raises concerns over laundry acquisition

Competition watchdog raises concerns over laundry acquisition

The Competition and Consumer Protection Commission (CCPC) has set out “provisional concerns” that a proposed acquisition may substantially lessen competition in the provision of rental laundry services.

The watchdog today issued its preliminary assessment to the parties involved in the proposed acquisition by Elis of OCL Laundry Services.

Elis SA is active in the State through its wholly owned subsidiaries, Elis Textile Services Limited and Berendsen Ireland Holdings Limited.

In a statement, the CCPC said it has concerns that the proposed transaction “may substantially lessen competition in the provision of flat linen rental and maintenance services in the State which could lead to higher prices, lower quality, and reduced innovation in the market”.

Both Elis and OCL are active in the supply of flat linen rental and maintenance services. Flat linen refers to products such as towels, ironed bed sheets, pillowcases and tablecloths.

The maintenance services offered by both companies include the collection, sorting, washing, drying and folding of linen for hospitality customers including hotels, hostels and B&Bs.

Elis also supplies flat linen services to hospitals and nursing homes. Elis serves hospitality customers from facilities in CoCork and Co Dublin, while OCL provides services from a single plant in Co Mayo.

“This is an important market for the hospitality sector meaning it impacts the tourism sector and the broader economy too,” the CCPC said.

As part of the assessment, the CCPC conducted economic analysis of the market and reviewed a significant volume of evidence including statements from the merging parties, internal documents and third-party evidence from competitors and customers of flat linen and maintenance services.

As this is a preliminary assessment and not a final determination, the parties now have the right to respond in writing. The parties can also request to make oral submissions and request access to the CCPC’s non-confidential file.

The CCPC will review any additional evidence received and come to a view on whether the merger could lead to a substantial lessening of competition in its final determination.

This proposed transaction was notified to the CCPC in August 2025. Following a preliminary (Phase 1) examination, the CCPC concluded that an in-depth (Phase 2) investigation was needed to establish whether the proposed transaction would lead to a substantial lessening of competition in the State.

The CCPC says it expects the full investigation to conclude no later than July 2026.

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