The UK competition regulator said on Thursday its in-depth probe has provisionally found that Lindab’s acquisition of British ventilation firm HAS-Vent could result in higher costs for ventilation systems in some areas.

The Competition and Markets Authority (CMA) said its Phase 2 review found competition concerns in the supply of circular ducts and fittings in areas around Nottingham and Stoke-on-Trent.

The regulator said the deal could lead to reduced choice and higher prices in the construction sector, particularly for specialist installers of ventilation systems.

Lindab strengthened its sales and production of ventilation products in the UK by announcing the acquisition of Birmingham-based HAS-Vent in October last year.

At the time of the deal announcement, HAS-Vent had 10 branches in the UK, some in locations where Lindab did not have operations.

The CMA said the companies can respond to its provisional findings by Sept. 12, and that its final report is due by Oct. 17.