CMA reopens IRI / Aztec merger investigation
4 Jul 2014 03:33 PM
The Competition and
Markets Authority (CMA) will reopen its investigation into the acquisition by
Information Resources Inc. (IRI) of Aztec Group
(Aztec).
The CMA sought the remittal of
the merger from the Competition Appeal Tribunal (CAT) following an application
for judicial review brought by AC Nielsen Company Limited (AC Nielsen). The
CAT made an order remitting the decision by the Office of Fair
Trading (OFT) to the CMA.
The OFT had cleared the merger
in December 2013. On 17 April 2014, AC Nielsen brought its application for
judicial review seeking re-consideration of the OFT’s decision not to
refer the merger for a phase 2 review by the Competition Commission. Although
the CMA initially planned to defend the application, it became clear, following
the intervention in the proceedings by IRI, that information not previously
made available to the OFT might have a bearing on the OFT’s
clearance.
In the circumstances, the CMA
considered the correct course of action to be for it to re-consider the
OFT’s decision not to refer. Both IRI and AC Nielsen consented to the
remittal.
The CMA will now require a new
Merger Notice from the merged parties and will consider whether to seek interim
orders from them in order to hold the businesses separate. An invitation to
comment to obtain third party views on the merger will be issued once the
Merger Notice has been finalised.
Notes for
editors
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The CMA is the UK’s
primary competition and consumer authority. It is an independent
non-ministerial government department with responsibility for carrying out
investigations into mergers, markets and the regulated industries and enforcing
competition and consumer law. From 1 April 2014 it took over the functions of
the Competition Commission and the competition and certain consumer functions
of the OFT, as amended by the Enterprise and Regulatory Reform Act
2013.
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Under the Enterprise Act 2002 a
relevant merger situation is or will be created if 2 or more enterprises have
ceased or will cease to be distinct enterprises; and the value of the turnover
in the UK of the enterprise being taken over exceeds £70 million; or as a
result of the transaction, in relation to the supply of goods or services of
any description, a 25% share of supply in the UK (or a substantial part of it)
is created or enhanced.
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On 17 April 2014 AC Nielsen
Company Limited applied for judicial review of the OFT’s decision
published on 24 March 2014 on the completed acquisition by Information
Resources Inc. of Aztec Group.
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AC Nielsen contested the
OFT’s decision on the basis of 5 grounds (the fifth having been
introduced after the original application was filed and the submission by the
merged parties that new information had come to light during the proceedings
before the CAT). The other 4 grounds are set out in Nielsen’s application.
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Enquiries should be directed
to Rory
Taylor or Siobhan Allen or
by ringing 020 3738 8798 or 020 3738 6460
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