The UK’s Competition and Markets Authority is investigating facilities management firm Mitie (MTO) over bids for services contracts at immigration centres in Heathrow and Derwentside, in County Durham.
The watchdog launched its probe on 1 March 2022 over concerns there may have been breaches of competition law in relation to an ongoing process run by the UK Government to procure services at the two immigration centres.
While the investigation started three days ago the news only today came to light, spooking investors and sending Mitie’s share price sharply lower.
At 9.30am, the stock was down more than 10% at 47.77p, the FTSE 250’s second largest faller, valuing the business at about £613 million.
In response to the CMA’s announcement, Mitie said that the company withdrew from the Derwentside IRC without submitting a bid due to the Home Office’s ‘Looting’ conditions, but that it remains engaged in the Heathrow tender process.
NO CASE TO ANSWER
‘Mitie strongly condemns anti-competitive practices and is co-operating fully with the CMA and the investigation,’ the company’s statement read. ‘Mitie is confident that it has no case to answer and will be fully exonerated,’ it added.
The CMA made the point that pre-empting the investigations findings should be avoided. ‘No assumption should be made at this stage that the CA98 has been infringed,’ the CMA notice read.
‘The CMA has not reached a view as to whether there is sufficient evidence of an infringement of competition law for it to issue a statement of objections to any of the parties under investigation.’
Mitie confirmed that it would not be issuing any further announcements in relation to the CMA’s investigation until its conclusion.
