HC Deb 19 March 1969 vol 780 cc469-70
2. Mr. J. H. Osborn

asked the President of the Board of Trade what are the guiding criteria and reasons which have brought about a decision to refer Unilever/Allied Breweries and Rank/De La Rue to the Monopolies Commission, and not refer the Cadbury/Schweppes merger; and what steps he will now take to clarify and explain these criteria to industry.

70. Mr. Barnett

asked the President of the Board of Trade if he will make a statement on his decision to refer the proposed mergers of Unilever/Allied Breweries and Rank/De La Rue to the Monopolies Commission.

Mr. Crosland

The 1965 Act lays upon me no obligation to give or explain such criteria, or to make statements on particular merger references. Nevertheless I am considering whether I can give some general guidance on the way our decisions are reached, though it would not, I think, be desirable to give the reasons why a particular merger has or has not been referred to the Commission.

Mr. Osborn

I thank the President of the Board of Trade for confirming Press reports that he is doing this, and for his categorical statement. When does he expect to be in a position to give these guides? What form will they take? Will they be in a White Paper?

Mr. Crosland

I prefer not to commit myself on any of those points. This is a very intricate question. None of this is laid down in the 1965 Act. It is something on which, I judge from outside debate, there is no clear consensus of view at the moment. I would prefer not to commit myself to a particular timetable.

Mr. Barnett

Will my right hon. Friend give a definition of "conglomerate"? Would he agree that not all conglomerates are necessarily bad, particularly when executives of the companies concerned have proved to be good? Is it the intention in the case of all proposed conglomerate-type mergers to refer them to the Monopolies Commission when they are over £5 million?

Mr. Crosland

On the first part of that question, I would prefer not to give an exact definition of "conglomerate". My hon. Friend is as capable as I am of giving a definition. On the second part, I do not think all conglomerates are necessarily bad, but the conglomerate merger movement raises questions of interest to all parties and all sections of public opinion. On the third part, I do not intend to refer automatically all conglomerate mergers.