Affected market: Polyurethane foam for car seating
No. ME/1173/03
Please note that the full text of the decision can be downloaded by using the link on the right. What follows are extracts regarding the parties, the transaction and the decision.
The OFT's decision on reference under section 33 under the Enterprise Act 2002 given on 20 August 2003
PARTIES
Woodbridge Foam (UK) Ltd (Woodbridge) is a subsidiary of the Canadian Woodbridge Group which specialises in the manufacture of moulded polyurethane foam components for use in car seats. The group has 57 manufacturing facilities in 15 countries. In the year to 31 October 2001 Woodbridge made a pre-tax profit of approximately £1.8 million on turnover of £28.9 million. Fehrer Great Britain Ltd (Fehrer) is the UK subsidiary of F.S Fehrer International Holding Gmbh, a German group specialising in the manufacture of polyurethane foam components for use in car seats. In the year ended 31 December 2001 Fehrer made an operating loss of £1,511 on turnover of £12.5 million.
TRANSACTION
The majority of Fehrer's UK plant was destroyed by fire in July 2002 and it has decided not to invest in rebuilding the plant in view of the expected stagnant nature of car production in the UK. Woodbridge proposes to acquire the remaining production carousel, and three supply contracts, for a consideration of around £700,000. The remaining two contracts will be retained by the Fehrer Group and serviced from production facilities outside the UK.
The 40 day administration deadline expires on 20 August 2003.
DECISION
This merger will therefore not be referred to the Competition Commission under section 33(1) of the Act.
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