Svitzer Marine operates 41 tugs in the UK and provides services in seven ports and six terminals; Adsteam provides harbour and terminal towage services in six of the UK's major deep-water ports and adjacent waterways. This report on the proposed acquisition of Adsteam by Svitzer concludes that the only significant lessening of competition would occur at Liverpool, where Svitzer should be required to divest either the Adsteam or Svitzer operation to a suitable purchaser. As well as the report and findings, this publication contains: financial information on the two companies; industry background; information on entry conditions into local markets; an analysis of Svitzer and Adsteam prices and discounts; sales and market share in Liverpool.
On 8 February 2011, the Office of Fair Trading (OFT) referred the completed acquisition by Stena AB (Stena) of DFDS Seaways Irish Sea Ferries Limited and related assets from DFDS A/S (DFDS) to the Competition Commission (CC) for investigation and report by 25 July 2011. Stena AB (publ) is a private company registered in Sweden. Stena's Irish Sea operations include ownership of two ports in the UK (Holyhead and Stranraer). DFDS operates a sea-based freight and passenger transport network in Northern Europe. Until 2011, it ran four routes on the Irish Sea: from Heysham to Belfast or Dublin, and from Liverpool to Belfast or Dublin. As a result of the acquisition, Stena took over two of the routes that DFDS had been operating: Liverpool-Belfast, and Heysham-Belfast. Following the acquisition, DFDS closed the two other routes that it had been operating (Liverpool-Dublin and Heysham-Dublin). The Commission found that the acquisition did not lead to a substantial lessening of competition for freight services or in the provision of services to passengers.
The Commission's report examines the market for personal current account (PCA) banking services in Northern Ireland, following on from a supercomplaint made by Which? and by General Consumer Council for Northern Ireland under the Enterprise Act 2002. This provisional report finds that banks have unduly complex charging structures and practices which are not sufficiently explained, and customers generally do not actively search for alternative PCAs or switch provider. It concludes that, despite significant changes in recent years, without effective remedial action the market as a whole will remain uncompetitive.
This publication sets out the Commission's provisional findings of its investigation into the market for classified directory advertising services (CDAS) in the UK. This type of advertising is often referred to as directional advertising and includes media such as classified directories, classified adverts in newspapers, online directories and certain forms of internet advertising. The Commission's inquiry focuses on advertising in printed classified directories, and the three largest classified directory publishers are Yell, Thomson and BT. Issues discussed include: the Yell undertakings in relation to prices and directory areas, market definition and concentration, pricing and revenues, barriers to entry and expansion, buyer power, the impact on competition of 'second tiering' or the introduction of additional directory publications in a given geographic area. Amongst its provisional findings, the report concludes that this sector is highly concentrated with Yell, Thomson and BT have a market share of around 98 per cent. Yell has market power and is the price setter in the market. The Commission will consider options to remedy the adverse effect on competition and will report on these separately.
The Commission's report makes recommendations to the Civil Aviation Authority on the maximum level of airport charges that can be levied at Heathrow and Gatwick airports for the five year period 2008-2013, as well as examining whether either company operated against the public interest in the charges they levied during the period 2002-2007 or through other operational activities. On the basis of the assumptions set out in the report, the Commission recommends i) a maximum opening yield of £10.19 per passenger at Heathrow with charges subsequently increasing at no more than RPI +7.5; and ii) a maximum opening yield of £5.50 per passenger at Gatwick with charges subsequently increasing at no more than RPI -0.5. The recommended levels are significantly below those put forward by BAA, although they are above those proposed by the airlines. The Commission argues that these charges will enable BAA to implement its plans to improve facilities and levels of service at both airports for the benefits of airlines, passengers and other airport users.
On 22 May 2009 the Office of Communications (Ofcom) published a statement concerning local loop unbundling entitled 'A new pricing framework for Openreach'. The statement contained decisions to impose charge controls on British Telecommunications (BT) in relation to various services supplied by BT in the market for wholesale local access services in the UK (excluding Hull). The services in question are all rental services meaning that a communications provider acquires the right to provide voice and broadband internet services to customers. Appeals were brought by the Carphone Warehouse Group plc against the decision in the statement before the Competition Appeal Tribunal. British Sky Broadcasting (Sky) and BT both intervened. This report explains the determinations made in the appeal.
This report confirms that BAA will be required to sell Stansted Airport followed by Edinburgh or Glasgow Airport. Following legal challenges to the CC's 2009 decision (ISBN 9780117064836) on the airports market, the Commission considered whether there were possible changes of circumstances that might lead to a different conclusion. The CC has, though, concluded that the sale of the airports is fully justified and that passengers and airlines would still benefit from greater competition with the airports under separate owner-ship, despite the current Government's decision to rule out new runways at any of the London airports. The CC has also concluded that the same timescale should remain for the sale of Stansted followed by sale of one of the Scottish airports. Stansted will be sold first as it serves the larger number of passengers and there will be a small overlap between the two sales periods.
In this report the Competition Commission (CC) formally clears the completed acquisition by Sector Treasury Services Limited (STS) of Butlers, a trading division of ICAP plc, which provides treasury management advisory (TMA) services. STS is a wholly-owned subsidiary of Capita Business Services Limited. This confirms the provisional findings that the acquisition has not resulted and is not likely to result in a substantial lessening of competition in the market for the supply of TMA services to local authorities on a retainer basis. Prior to the merger, both companies supplied (among other things) TMA services to local authorities in the UK under retainer contracts. Treasury management is the process by which public and private sector bodies manage their cash flows and associated financial risks. It includes deciding when, for how long and with whom to invest surplus funds and from whom to borrow additional funds and on what terms
Greif UK Ltd is the largest manufacture of new large steel drums in the UK. On 30 November 2006 Grief UK acquired the new steel drum and closure businesses of Blagden Group, which was the second-largest producer of new steel drums in the UK. The merged businesses' combined share of supply of new steel drums in the UK is 85 per cent. Steel drums are the most widely-used form of large rigid industrial packaging, used in a range of industry sectors to package, transport and store a variety of substances. Demand for them has been declining, due to demand for less packaging and competition from plastic drums and intermediate bulk containers. The merger has resulted in a highly concentrated market, and has removed the main competitive restraint on Greif's prices and future behaviour. The Commission then examined what other developments might prevent the merged entity from exploiting its market position and increasing prices to customers. Schètz Group in the Netherlands is building a new large steel drum line, and the Commission feels that imports from there could be competitive. Other entrants into the market are thought unlikely. Recent developments in multi-layer plastic extrusion and coating techniques could allow more products to be packed in plastic containers. Suppliers of alternative packaging have invested in increased capacity so this might be a stronger competitive restraint in future. The Commission does not expect a substantial lessening of competition (SLC) to result from the merger.
This report formally clears Zipcar Inc's completed acquisition of rival car club Streetcar Limited. The CC has concluded that other companies are likely to enter and expand into this rapidly growing market, and that such competition will counter the danger of the merged company being able to raise prices or worsen its services to customers. The acquisition, which was completed in April 2010, brings together Streetcar, the largest car club in London, and Zipcar, the second largest. Car club members pay an annual membership fee and are able to hire cars by the hour picking up the vehicle from convenient nearby locations, using the flexibility offered by smart card technology and online and mobile booking tools. The Office of Fair Trading (OFT) referred the case to the CC in August for the CC to decide whether the acquisition may be expected to result in a substantial lessening of competition within any market or markets in the UK, including the supply of car club services in London.
This Competition Commission report examines the purchase by Somerfield plc of 115 stores and other assets from Wm Morrisons plc in October 2004. The Office of Fair Trading referred this to the Commission in March 2005, with competition concerns. The Commission has concluded that the completed acquisition may be expected to result in a substantial lessening of competition in 12 local grocery retail markets, as well as 14 local markets where acquisition gave concern. To restore competition in these markets Somerfield will have to sell 12 stores to suitable grocery retailers approved by the Commission. Somerfield group is the fifth largest supermarket group with a UK annual turnover of approximately £4.7 billion. It has 750 mid-range stores under Somerfield, and 500 under Kwik Save. Morrisons is the fourth largest grocery retailer in the UK, operating about 500 stores. An earlier Competition Commission report on mergers issued as a Command Paper (Cm.5950) is also available on the subject of proposed mergers between Safeway plc and Asda Group Limited (owned by Wal-Mart Stores Inc); Wm Morrison Supermarkets PLC; J Sainsbury plc; and Tesco plc (see ISBN 0101595026).
In light of the concerns that have been raised about the lack of transparency of credit card charges in the UK, particularly in relation to interest rates charged for store card credit, this matter was referred by the Office of Fair Trading to the Competition Commission in March 2004. The Commission's inquiry focuses on two key aspects: store card credit services to retailers and related insurance services; and consumer credit through store cards and related insurance services. These cards offer a method of payment and credit option which are retailer-specific, and are mostly operated by department stores and clothing retailers. The investigation is based on data relating to the period from 1999 to 2003 (supplemented by relevant information for 2004 and projections for 2005 and 2006) and focuses on the functioning of the market as a whole rather than on the conduct of individual companies. Issues examined include: relevant economic markets and the wider regulatory framework; proposals to reform the legislation governing the credit market and statutory issues; factors that prevent, restrict or distort competition; detrimental effects on customers; and options for remedial action. The report finds that the interest rates charged on store cards are too high (generally annual percentage rates (APRs) of between 10 to 20 per cent above required levels), resulting in an estimated cost for consumers of at least £55 million a year and possibly significantly more. A number of remedies are identified that store card credit providers should make, including warning cardholders on monthly statements that cheaper credit may be available elsewhere; providing more and clearer information on all monthly statements; offering an option to pay by direct debit; and offering payment protection insurance separately from other elements of store card insurance.
The Competition Commission (CC) has cleared the anticipated acquisition by BATS Global Markets, Inc of Chi-X Europe Limited. Both companies operate Multilateral Trading Facilities which enable market participants (investment banks, brokers and dealers) to trade equities through a single platform as an alternative to trading on exchanges such as the London Stock Exchange.In this final report, the CC confirms its provisional findings published last month and concludes that the acquisition is not likely to result in a substantial lessening of competition in trading services for UK-listed equities. The CC found that customers would have the power to prevent any attempt by the merged company to raise trading fees or worsen service quality, by taking, or threatening to take, their business elsewhere or even potentially sponsoring new entry. Such sponsored entry has occurred in this sector before: large customers have strong incentives to ensure that trading conditions remain competitive.
In this report the Competition Commission (CC) confirmed that it would introduce a remedies package based around a point-of-sale prohibition for all forms of payment protection insurance (PPI) (with the exception of retail PPI) after detailing how it will benefit customers. The point-of-sale prohibition would stop the completion of sales of PPI during the sale of the associated credit product such as a personal loan. It was one of a package of measures the CC planned to introduce following its investigation into PPI (2009, ISBN 9780117067363), which concluded that businesses that offer PPI alongside credit face little or no competition when selling PPI to their credit customers. The report and in particular the proposed point-of-sale prohibition were the subject of a legal challenge to the Competition Appeal Tribunal (CAT) by Barclays, supported by Lloyds Banking Group and Shop Direct Group Financial Services Ltd. Whilst upholding the CC's conclusions as to the competition problems in this market, the CAT ruled that it must in particular consider further the role and importance of a potential drawback to the prohibition, namely that it might inconvenience customers. Following the CAT's judgment, the CC carried out a detailed analysis of the likely effects of such a prohibition and concluded that the benefits of a package of remedies including the prohibition, by introducing greater competition and choice and lower prices to the market, would outweigh the disadvantages, in particular the potential inconvenience to some customers.
The Commission's report examines the market impact of the acquisition by Cott Beverages Ltd of Macaw (Holdings) Ltd on the supply of own-label polyethylene terephthalate (PET) bottled carbonated soft drinks (CSDs) in the UK. It concludes that the merger has not, and is not expected to result in a substantial lessening of competition (SLC) as a result of the co-ordinated exercise of market power.
A Report on the Anticipated Travel Business Joint Venture Between Thomas Cook Group Plc, the Co-operative Group Limited and the Midlands Co-operative Society Limited
A Report on the Anticipated Travel Business Joint Venture Between Thomas Cook Group Plc, the Co-operative Group Limited and the Midlands Co-operative Society Limited
In this report the Competition Commission (CC) formally clears the anticipated travel business joint venture between Thomas Cook, the Co-operative Group (Co-op) and the Midlands Co-operative Society (Midlands). This confirms the provisional findings, that the acquisition will not result in a substantial lessening of competition in any markets in the UK, in particular for customers buying package holidays from high street travel agents. Therefore, customers are unlikely to suffer from significantly higher prices or reduced choice as a result of the joint venture. The joint venture would bring together two of the three largest travel agents on the UK high street. Thomas Cook currently has 780 stores, Co-op 360 and Midlands 100. Thomas Cook will continue to conduct its tour operator business separately from the joint venture.
Provides information about the Competition Commission clearing the completed acquisition by Francisco Partners LP of G International Inc., and stating that the acquisition should not lead to any substantial lessening of competition within the EDI communication services in the UK.
This report investigates the completed merger of Clifford Kent Holdings Ltd, parent company of Stonegate Farmers Ltd, and Deans Food Group Ltd, through Noble Foods Ltd. Through the merger, Noble Foods gained control of 60 to 70 percent of the supply of shell eggs to retailers and over half of the supply of liquid eggs. This inquiry by the Competition Commission finds that the merger has led to a substantial lessening of competition and that the most practicable remedy is the divestiture of Stonegate.
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