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OFT refers anticipated acquisition by Bretagne-Angleterre-Irlande S.A of certain assets used by P&O ferries on its Portsmouth to Le Havre service

203/04      7 December 2004

The OFT today referred the anticipated acquisition by Brittany Ferries (Bretagne-Angleterre-Irelande S.A.) of certain assets used by P&O on its Portsmouth to Le Havre ferry route to the Competition Commission (CC).

The OFT has decided that the test for reference is met in relation to the supply of ferry services to freight and tourist customers on the Western Channel.

John Vickers, Chairman of the OFT, said:

'The merger would give Brittany Ferries over 70 per cent of tourist and freight ferry crossings on the Western Channel.  Although P&O says it would exit these routes in any event, further investigation by the CC is required to assess whether or not the merger is likely to be less competitive than realistic alternatives.'

The CC is expected to report by 23 May 2005.

NOTES

1. The Reference Test - The OFT has a duty to make a reference to the CC if the OFT 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; and the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

2. Under the Enterprise Act 2002 a relevant merger situation is created if two or more enterprises have ceased to be distinct enterprises; and the value of the turnover in the United Kingdom of the enterprise being taken over exceeds £70 million; or as a result of the transaction, in relation to the supply of goods or services of any description, a 25 per cent share of supply in the UK (or a substantial part thereof) is created or enhanced.

3. 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.

4. The text of this decision will be placed on the mergers section of this website as soon as is reasonably practicable.

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