§ Mr. Iain Millsasked the Secretary of State for Trade and Industry (1) what definition of the national interest he uses in deciding upon a reference to the Monopolies and Mergers Commission in the case of corporate takeover bids;
(2) if he will publish the criteria he uses in deciding upon references to the Monopolies and Mergers Commission on company takeover bids.
§ Mr. HowardMy right hon. Friend the Secretary of State for Trade and Industry may make a reference to the commission where it appears to him that a merger proposal may have a bearing on the public interest. In making a decision on a reference, he takes into account the advice of the Director General of Fair Trading. The policy of the Government is to make references to the commission primarily on competition grounds. This does not, however, rule out the possibility of references on other public interest grounds. In assessing whether a merger proposal may raise public interest questions, my right hon. Friend is guided by the public interest criteria set out in section 84(1) of the Fair Trading Act 1973.
§ Mr. Iain Millsasked the Secretary of State for Trade and Industry if he is satisfied with the operation of the Fair Trading Act 1973 on corporate takeover bids; and if he will make a statement.
§ Mr. HowardYes. I am satisfied that the legislative and policy framework within which mergers are examined, in allowing for consideration of each case on its merits in the light of all the relevant circumstances, enables us to assess whether a proposal raises potential public interest questions which deserve further consideration by the Monopolies and Mergers Commission.