Newsroom

OFT refers large steel drum manufacturing merger to the Competition Commission

30/07    20 February 2007

The OFT has referred the completed acquisition by various subsidiaries of Greif Inc of the large steel drum and closures manufacturing business of Blagden Packaging Group to the Competition Commission (CC).

The OFT has decided that the test for reference is met in relation to the supply of new large steel drums in the UK.

Brian McHenry, General Counsel at the OFT, said:

'The merger increases to over 85 per cent Greif's already substantial share of the supply of new large steel drums in the UK and customers are concerned. We have therefore asked the Competition Commission to investigate the possibility of this merger reducing competition in the supply of this product.'
 
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 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. The CC is expected to report by 19 June 2007.

4. The text of this decision will be published in the mergers section as soon as is reasonably practicable.

Since the issuing of this press release the date by which the Competition Commission is expected to report back has been updated to August 6

Back to:Press releases