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OFT refers anticipated acquisition by SDEL

161/04    29 September 2004

The OFT today referred the anticipated acquisition by Serviced Dispense Equipment Limited (SDEL) of the technical services function of Coors Brewers Limited (Coors) to the Competition Commission (CC).

The OFT believes that arrangements are in progress or in contemplation which, if carried into effect, will result in a relevant merger situation, and that the creation of that situation may be expected to result in a substantial lessening of competition within the market for technical services equipment and technical services in Great Britain. 

As the second largest technical services operation on a national scale, Coors' technical services function is the most significant existing competitive constraint on SDEL. The transaction removes the potential for competition (particularly on quality) to continue to develop between Coors' technical services function and SDEL. By removing Coors' technical services function as an alternative, the transaction may stifle existing and future competition in the supply of technical services equipment and technical services.

The CC is expected to report by 15 March 2005.

NOTES

1. The Enterprise Act 2002 empowers the Office of Fair Trading to refer to the CC completed or anticipated mergers for investigation and report which create or enhance a 25 per cent share of supply in the UK (or a substantial part thereof) or where the turnover in the UK associated with the enterprise being acquired is over £70m.

2. The CC may extend the 24 week period within which it is required to publish its report by no more than eight weeks if it considers that there are special reasons why the report cannot be published within that period.

3. 'Technical services equipment' is the equipment installed at on-trade outlets to dispense draught beer and cider.  'Technical services' includes the installation and servicing of that equipment.

4. SDEL was formed in May 2004 by the merger of the technical services functions of Scottish Courage Limited and Carlsberg UK Limited.

5. The text of this decision will be placed on the mergers section of the OFT's website and will also be referenced in the OFT's Weekly Gazette as soon as is reasonably practicable.

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