COMPETITION
COMMISSION News Release (20/08) issued by The Government News
Network on 1 July 2008
The Competition
Commission (CC) has published an issues statement as part of its
inquiry into the proposed acquisition by BOC Limited (BOC) of the
chlorine packaging and distribution business of Ineos Chlor
Limited (Ineos).
The CC has been asked to decide whether the acquisition may be
expected to result in a substantial lessening of competition (SLC)
within any market or markets in the UK for goods or services,
including that in which packaged chlorine is distributed in the
UK. One use of such chlorine is by the UK water industry for water purification.
The issues statement follows the initial process of gathering
information, views and evidence and identifies clearly for all
interested parties the specific questions and areas the inquiry is
examining. This will form the basis for further information
gathering and hearings with other interested parties.
The full issues statement is available on the CC website at http://www.competition-commission.org.uk/inquiries/ref2008/ineos/index.htm.
It examines issues such as:
(a) market definition;
(b) the counterfactual: ie what would have happened in the
absence of the proposed acquisition;
(c) the extent of barriers to entry or expansion in the relevant market(s);
(d) the extent of buyer power in the relevant market(s); and
(e) the competitive effects of the acquisition.
If the inquiry group (the Group) considers that the acquisition
may be expected to result in an SLC, it will consider whether and,
if so, what remedies might be appropriate, taking into account any
customer benefits that might arise from the acquisition. It will
issue a remedies statement, should this be required, at about the
time it publishes its provisional findings.
The issues statement should not be seen as implying that the
Group has identified any competition concerns-the CC has yet to
reach any conclusions on this inquiry. The purpose of making the
statement of issues public is to inform all interested parties and
give them an opportunity to raise any further points with the CC.
Anyone wishing to comment further on any of the issues raised is
requested to do so by 15 July 2008 by email to
Michelle.Horan-Cashmore@cc.gsi.gov.uk or in writing to:
Inquiry Manager (BOC/INEOS Inquiry)
Competition
Commission
Victoria House
Southampton
Row
London
WC1B 4AD
The CC will now continue to gather evidence in this inquiry and
will publish its provisional findings according to the
administrative timetable available on the CC website.
Notes for editors
1. The Enterprise Act 2002 empowers the OFT to refer to the CC
completed or proposed mergers for investigation and report which
create or enhance a 25 per cent share of supply in the UK (or a
substantial part thereof) or where the UK turnover associated with
the enterprise being acquired is over £70 million.
2. The BOC/INEOS Group consists of four members: Diana Guy
(Group Chairman), Jill Hill, Alexander Johnston and Professor
Michael Waterson.
3. The CC has a 24-week period in which it is required to publish
its report, which may be extended by no more than eight weeks if
it considers that there are special reasons why the report cannot
be published within that period. It is required to report by 12
November 2008.
4. Further information on the CC and its procedures, including
its policy on the provision of information and the disclosure of
evidence, can be obtained from its website at: http://www.competition-commission.org.uk.