HC Deb 16 March 1981 vol 1 cc8-9
8. Mr. Hooley

asked the Secretary of State for Trade if he will refer the bid of the American corporation Enserch for the British firm of Davy-Loewy to the Monopolies and Mergers Commission.

Mr. Biffen

I referred this proposed merger to the commission on 3 March.

Mr. Hooley

That answer is useful as far as it goes. Is the right hon. Gentleman aware that the objective of the American corporation is to gain control of certain chemical processes of Davy-Loewy involved in energy production, and that, having obtained it, it is as likely as not to shut down the steel plate making capacity of Davy-Loewy, which would be a disaster for Britain? Will he have close consultations with the Secretary of State for Industry about the implications of the takeover?

Mr. Biffen

I shall keep in touch with my right hon. Friend the Secretary of State for Industry on the takeover. I wish to say nothing that might imply that I have prejudged the studies now being undertaken by the Monopolies and Mergers Commission.

Mr. Flannery

Does the right hon. Gentleman realise that this famous Sheffield company is the only firm in Britain that makes entire steel mills for export? If a competitor took over the firm, changed the nature of it and closed it, does he understand that it would be a disaster for not only Sheffield—which is taking a keen interest in the proposed takeover—but for British industry generally? Even if the commission gives an unsatisfactory answer, will he do something to try to preserve this firm?

Mr. Biffen

I am sure that the hon. Gentleman has studied the Fair Trading Act 1973, especially section 84, which places before the commission a series of criteria which cover the matters that the hon. Gentleman has raised. It will be better to wait until it has reported.

Mr. Crowther

Does the right hon. Gentleman realise that his replies will not give much encouragement to the management and work force at Davy-Loewy who are looking to him to protect their interests and the national interest? Does he accept that it would be a national disaster if the entire British steel industry became dependent on overseas producers for its metallurgical plant?

Mr. Biffen

It would not serve public policy in its widest sense if I gave the impression that I had made up my mind independently of whatever might be concluded by the commission.