§ Mr. Alexander W. Lyonasked the Secretary of State for Prices and Consumer Protection when he expects to publish the report of the Monopolies and Mergers Commission inquiry on proposed mergers between Redfearn National Glass Limited and Rockware Group Limited and United Glass Limited; and if he will make a statement.
§ Mr. John FraserMy right hon. Friend received the report on 14th April; it is being published today. The Commission reached a unanimous conclusion that the 273W proposed mergers might be expected to operate against the public interest. The Commission concluded that a merger of Redfearn with either United Glass or Rockware would be contrary to the public interest because it would have the following adverse effects: it would lead to dimished competition, to the risk of less adequate provision of capacity in the United Kingdom to meet demand and, in the short term at least, to the risk of increased imports. The Commission did not conisder that the reductions in costs that might be achieved under either merger would counter-balance these disadvantages. It was, moreover, unable to recommend any action which would remedy or prevent the adverse effects that might result if either merger were permitted. It therefore recommended that neither merger should be permitted.
My right hon. Friend agrees, in the light of the Commission's findings, that the mergers should not go ahead and is requesting the Director General of Fair Trading to consult the parties with a view to obtaining from them undertakings to that effect.