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OFT consults on undertakings given by Tetra Group plc

150/06    19 October 2006

The OFT is currently consulting on undertakings provided by the Tetra Laval Group (Tetra) to address competition concerns raised by the anticipated acquisition of part of Carlisle Process Systems.

In July 2006 the OFT announced that it was suspending its duty to refer the anticipated acquisition to the Competition Commission under Section 33 of the Enterprise Act 2002, because the OFT was considering whether to accept appropriate undertakings from Tetra in lieu of reference.

The OFT believes that the transaction may result in a substantial lessening of competition in relation to the supply to UK customers of certain equipment used for the industrial manufacture of cheddar cheese.

Tetra has offered to give undertakings to grant a suitable purchaser an exclusive irrevocable EEA-wide licence of intellectual property rights relating to cheese equipment sold under the 'Wincanton' brand. Details of the divestment package are set out in the proposed undertakings.

The OFT considers that the proposed undertakings offered by Tetra are, in the circumstances of this case, appropriate to remedy, mitigate or prevent the competition concerns identified in its decision of 20 July 2006, and is minded to accept these undertakings. However, before deciding whether to accept the undertakings, interested parties are invited to give their views to the OFT.

Read proposed undertakings. Representations should be made in writing by 8 November 2006 to:

Elisabetta Rotondo
Mergers Branch
Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
London EC4Y 8JX

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 a relevant merger situation has been created; and the creation of that situation has resulted, or 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 text of this decision can be seen in the mergers section and will also appear in the Office's Weekly Gazette as soon as is reasonably practicable.

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