§ Mr. Skeetasked the Minister for Trade if he will refer the takeover of Redpath, Dorman Long by the Trafalgar House group to the Monopolies and Mergers Commission under section 51 of the Fair Trading Act 1973 to discover whether a monopolies situation exists; whether it is in the public interest; and whether it will augment competition in the United Kingdom Market.
§ Dr. VaughanMy right hon. and noble Friend's decision not to refer this merger to the Monopolies and Mergers Commission was based on a careful consideration of the factors involved. He concluded that the acquisition did not raise issues of competition or other matters of public interest sufficient to justify an investigation by the Commission.
Contrary to comments suggesting larger percentages, it is estimated that the combined company would have no more than 10 per cent. of the total United Kingdom market for structural steel work, including bridges. Even in the narrower market for the larger kinds of heavy construction work, where the firms are stronger, their share is unlikely to exceed 15 per cent. In the United Kingdom piling market, their combined share would be around 20 per cent. In each market there are numerous United Kingdom competitors. The merger is thus likely to have only limited effect on competition within the United Kingdom; but it should give the combined group extra strength in international tendering.
My right hon. and noble Friend's decision was in accordance with the recommendation of the Director General of Fair Trading.
§ Mr. Skeetasked the Minister for Trade if he will arrange for the publication of the report by the Director General of Fair Trading on the takeover of Redpath, Dorman Long by the Trafalgar House group.
§ Dr. VaughanNo. It is not the Government's practice to publish the Director General's advice to Ministers on proposed mergers. This advice is confidential, and often draws on commercially confidential information provided by the companies concerned. Publication would discourage companies from co-operating with the Director General and inhibit him in the performance of his duties.