Merger Update: Travis Perkins/BSS Group
December 10 2010 - 11:00AM
UK Regulatory
TIDMTPK TIDMBTSM
RNS Number : 7779X
Office of Fair Trading
10 December 2010
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| 135/10 | 10 December 2010 |
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+-------------------------------------------------------------+
| TRAVIS PERKINS/BSS: OFT ACCEPTS UNDERTAKINGS FROM TRAVIS |
| PERKINS |
+-------------------------------------------------------------+
The OFT has today accepted undertakings from Travis Perkins PLC to sell Plumbing
Trade Supplies or City Plumbing Supplies stores in 20 local areas across the UK
to resolve competition concerns raised by its merger with the BSS Group PLC.
During its investigation into the merger, the OFT concluded that it could not
dismiss competition concerns in the 20 local areas, and as a result, Travis
Perkins offered to make divestments in order to avoid a reference to the
Competition Commission.
The public consultation on the proposed undertakings did not lead the OFT to
conclude that modifications are required to them. The OFT believes that the
proposed undertakings are appropriate to remedy the competition concerns
identified in its decision of 26 October 2010 and has therefore accepted them.
Amelia Fletcher, Senior Director of Mergers for the OFT, said:
'After a careful investigation, we concluded that this transaction raised
competition concerns in 20 local areas. The remedies that we have accepted
today, once fully implemented, should retain competition at the level that
existed pre-merger, thereby protecting consumers in those local areas.'
NOTES
1. The reference test - the OFT has a duty to make a reference to the
Competition Commission if it believes that it is or may be the case that
arrangements are in progress or in contemplation which, if carried into effect,
will result in the creation of a relevant merger situation, and the creation of
that situation may be expected to result in a substantial lessening of
competition within any market or markets in the United Kingdom for goods or
services.
2. Under the Enterprise Act 2002 a relevant merger situation is created if two
or more enterprises have ceased to be distinct enterprises; and the value of the
turnover in the United Kingdom of the enterprise being taken over exceeds GBP70
million; or as a result of the transaction, in relation to the supply of goods
or services of any description, a 25 per cent share of supply in the UK (or a
substantial part thereof) is created or enhanced.
3. Undertakings in lieu of reference - under section 73 of the Enterprise Act
2002 the OFT may, instead of making a reference to the Competition Commission,
and for the purpose of remedying, mitigating or preventing the substantial
lessening of competition concerned, or any adverse effect which may be expected
to result from it, accept from such of the parties concerned as it considers
appropriate undertakings to take such action as it considers appropriate. The
OFT is required to consult publicly before accepting any such undertakings.
4. The full text of this decision and a copy of the agreed undertakings will
appear in the mergers section of this website at a later date.
MEDIA enquiries: 020 7211+
Frank Shepherd 8133 Kasia Reardon
8901
Jonathan Marciano 8898 Pritie Bilmoria
8708
Out of hours: mobile: 07774 134814 messages: 020 7211 8961
Copies of press notices: Ext. 8993
http://www.oft.gov.uk
PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.uk
OFT reports and consumer information leaflets are available free from:
OFT, PO Box 366, Hayes UB3 1XB 0870 6060321 oft@eclogistics.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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