The Competition Authority is to carry out a full investigation of the proposed acquisition of Applied Energy Holdings by Glen Electric Limited, a Northern Ireland-based subsidiary of the Glen Dimplex Group.

Glen Electric announced in June that it was buying the Cambridgeshire-based company, which manufactures water heaters, ventilation products and radiators.

However, the takeover had been notified to the Irish Competition Authority, as some of Applied Energy's products are sold in Ireland.

"Both parties are involved in the sale of electric space heating products and shower products in the State," the Competition Authority said.

Under the mergers and acquisitions section of the Competition Act 2002, the authority must determine whether the the proposed acquisition would "substantially lessen competition" in markets for goods or services in the State.

However, the authority said that, after a preliminary investigation, it had been unable to conclude without further investigation that the transaction would not substantially lessen competition. It now has until November 18th next to make a final determination on the transaction. Interested parties have until September 5th to make written or oral submissions on the deal, the authority said.

No figure was disclosed for the transaction earlier this summer, although industry sources at the time said it could be in the region of €20-25 million.

Applied Energy manufactures more than 25,000 products a week, including brands such as Creda, Xpelair, Redring and Stiebel Eltron. It has an annual turnover of nearly £50 million.

Glen Dimplex has an annual turnover approaching €2 billion and employs 10,000 people worldwide.