Anticipated acquisition by BioReliance Corporation of Q-One Biotech Group Limited

Affected market: Biopharmaceutical services

No. ME/1285/03

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, jurisdiction and decision.

The OFT's decision on reference under section 33 given on 16 September 2003

PARTIES

BioReliance Corporation (BioReliance) is the US parent company of the BioReliance Group. It is listed on the NASDAQ. BioReliance provides biosafety testing, toxicology and biomanufacturing services to customers in the biopharmaceutical and pharmaceutical industries. It operates from sites in the USA, Germany and the UK. Its subsidiary, BioReliance UK, is situated in Stirling in Scotland and is predominantly engaged in biosafety testing and biomanufacturing. In the year to 31 December 2002, BioReliance's UK turnover was approximately (see note 1).

Q-One Biotech Group Limited (Q-One) is principally involved in the provision of biosafety testing and biomanufacturing from its facilities in Glasgow and Edinburgh in the UK as well as the USA. Q-One has three subsidiaries: Q-One Biotech Limited, Q-One Biotech Inc and Quip Technology Limited. In the financial year to 31 March 2003, Q-One's UK turnover was approximately (see note 1).

TRANSACTION

BioReliance proposes to acquire the entire issued share capital of Q-One for approximately (see note 1). The transaction is conditional upon the merger obtaining competition clearance in the UK.

The transaction was notified by BioReliance on 22 July 2003. The 40 working day administrative deadline expires on 16 September 2003.

JURISDICTION

As a result of this transaction, BioReliance and Q-One will cease to be distinct. The parties overlap in the supply of biomanufacturing and biosafety testing and the share of supply test in section 23 of the Enterprise Act 2002 (the Act) is met. It is therefore probable that a relevant merger situation will be created.

DECISION

This merger will therefore not be referred to the Competition Commission under section 33(1) of the Act.

NOTES

1. Figures removed at the parties' request.

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