Anticipated acquisition by Biolin AB of Nima Technology Limited

Affected market: Langmuir Blodgett instruments and tensiometers

No. ME/3172-07

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 33(1) given on 29 August 2007. Full text of decision published 6 September 2007.

PARTIES

Biolin AB (Biolin) is a Swedish company listed on the Stockholm Stock Exchange. Biolin owns KSV Instruments Limited (KSV) a Finnish company which manufactures and supplies instruments for measuring liquid surfaces and other surface chemistry applications.

Nima Technology Limited (Nima) is a UK company which manufactures and supplies instruments for surface chemistry research and applications. Its turnover for the year to 31 March 2007 was £120,000.

TRANSACTION

Biolin intends to acquire the entire issued share capital of Nima.

The parties submitted a Merger Notice to the Office of Fair Trading (OFT) on 18 July 2007. The OFT's (extended) statutory deadline expires on 30 August 2007.

JURISDICTION

As a result of this transaction, Biolin and Nima will cease to be distinct. The share of supply test in section 23 of the Enterprise Act 2002 (the Act) is met in relation to the supply of Langmuir Blodgett instruments, which are used for measuring liquid surfaces and other surface chemistry applications.

The OFT therefore believes that it is or may be the case that arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation.

THIRD PARTY VIEWS

None of the customers who have been contacted by the OFT have expressed substantive competition concerns in relation to the proposed merger.
 
ASSESSMENT

The parties overlap in the supply of each Langmuir Blodgett instruments and in the supply of tensiometers in the UK and each of the overlap products is considered as a separate frame of reference. In the absence of competition concern, it has not been necessary to conclude on the geographic frame of reference. Total UK sales of Langmuir Blodgett instruments are estimated at £ 275,000.

In light of the limited degree of rivalry between the parties pre merger, the absence of any concerns on the part of customers, the existence of a competitive fringe able to sustain sufficient post merger rivalry notably via strong cross border activity, the OFT does not believe that this merger will raise competition concerns. In addition, barriers to entry and expansion are considered to be low, and customers may opt for self-supply, should prices increase or quality decline post-merger.

Consequently, the OFT does not believe that it is or may be the case that the merger 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 33(1) of the Act.

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