Affected market: Auction services: selling racehorses
No. ME/3264/07
No. ME/3264/07
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, jurisdiction, third party views, assessment and decision.
The OFT’s decision on reference under section 22(1) given on 25 October 2007. Full text of decision published 31 October 2007.
PARTIES
Robert J Goff & Co plc (Goffs) is active in the provision of auction services for the sale of thoroughbred racehorses (bloodstock auction services).
Doncaster Bloodstock Sales Limited (DBS) is also active in the provision of bloodstock auction services. Its turnover in the UK for the period ended 19 April 2007 was £3.35 million.
TRANSACTION
The shareholders of DBS received 9 per cent equity in Goffs in exchange for their shares in DBS. Completion of this transaction occurred on 6 July 2007. The administrative deadline is 25 October 2007 and the statutory deadline expires on 5 November 2007.
JURISDICTION
As a result of this transaction Goffs and DBS have ceased to be distinct. The parties overlapped in the supply of bloodstock auction services and their combined share of supply in the UK exceeded 25 per cent, so the share of supply test in section 23 of the Enterprise Act 2002 (the Act) was met. The OFT therefore believes that it is or may be the case that a relevant merger situation has been created.
THIRD PARTY VIEWS
No customers (sellers or buyers) were concerned by this transaction. One seller submitted to the OFT that the merger would help provide greater competition to Tattersalls. The only concerns raised, regarding the reduction in the choice for the sellers of yearlings and the increase in commission charged by DBS, were made by a competitor and have been addressed above.
ASSESSMENT
The parties overlapped in the supply of bloodstock services in the UK and Ireland.
Although the merger involved the second and third largest bloodstock auctioneers in UK and Ireland, the presence of Tattersalls, the largest bloodstock auctioneer in UK and Ireland, as well as other bloodstock auctioneers in UK and Ireland and further afield (for example, France) will continue to act as a competitive constraint on the parties' behaviour post-merger. Furthermore, both sellers and buyers of bloodstock stated that they use a number of bloodstock auctioneers and that they did not have any concerns about the merger.
Consequently, the OFT does not believe that it is or may be the case that the merger has resulted or may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom.
DECISION
This merger will therefore not be referred to the Competition Commission under section 22(1) of the Act.
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