UK competition regulator raids Mitie offices in London

theguardian.com:

Competition investigators raided the offices of outsourcer Mitie and are examining the emails of senior staff, after the Home Office raised concerns about suspected anti-competitive behaviour, the Guardian understands.

The Competition and Markets Authority (CMA) is examining the relationship between Mitie and US firm PAE, who operate a joint venture for the Ministry of Defence but were also competing to run Home Office immigration removal centres, at Derwentside, in Coutry Durham, and Heathrow.

Mitie’s shares fell more than 10% earlier this month after it informed investors that the CMA was investigating the competition process, despite the company saying it expected to be “fully exonerated”.

The firm appeared to focus on the Derwentside contract in its statement, blaming Home Office bidding rules for its withdrawal from the bidding.

But a source said investigators were focusing more on a separate competition between Mitie and PAE for the Heathrow centre.

Both companies were bidding on the immigration contract until PAE pulled out last year, leaving the way clear for Mitie. The Home Office subsequently referred both companies to the CMA, the Guardian understands.

The CMA, which is investigating whether breaches of competition law took place, is now thought to be looking into the wider working relationship between the companies.

Mitie and PAE are partners on a separate joint venture called Landmarc, managing firing ranges, training and explosives handling facilities for the Ministry of Defence.

Landmarc is one of five companies providing the services to the MoD, as part of a £1.5bn framework agreement, which will be up for renewal in March 2024.

CMA officials are understood to have raided Mitie’s offices, on the 12th floor of the