HL Deb 15 June 1988 vol 498 cc364-5WA
Lord O'Hagan

asked Her Majesty's Government:

Whether and if so how their policy on mergers is compatible with that of the Commission of the European Communities.

The Secretary of State for Trade and Industry (Lord Young of Graffham)

The Government's policy is to take account of competition from Europe and elsewhere in deciding whether to refer a merger to the Monopolies and Mergers Commission. A Commission proposal for a regulation to control mergers which are deemed to have a Community dimension is under discussion at present.

Lord O'Hagan

asked Her Majesty's Government:

What steps they are taking to ensure that it is as easy for British companies to take over companies in other member states of the European Community as it is for companies in other member states to take over companies in the United Kingdom.

Lord Young of Graffham

The Government have made clear that in general they encourage the free flow of investment both inward and outward.

Lord O'Hagan

asked Her Majesty's Government:

Whether they believe that companies outside the European Community will use the United Kingdom as an easy system of entry into the Community during the completion of the Single Internal Market.

Lord Young of Graffam

The Government do not believe that this is likely. When the UK joined the European Community in 1973 there was no significant increase of acquisitions in the UK by firms in non-EC countries. Nevertheless, if membership of the Community increases the attractiveness of the UK as a place to invest, the Government regard this as a matter for satisfaction rather than regret.

Lord O'Hagan

asked Her Majesty's Government:

Whether British companies are more vulnerable to hostile takeovers than companies in other member states of the European Community.

Lord Young of Graffham

The vulnerability or otherwise of British companies to hostile takeover from any source is primarily a matter for the managements of the companies concerned to address. It is for them to persuade their shareholders not to sell to unwelcome purchasers.

Lord O'Hagan

asked Her Majesty's Government:

Whether the European Community should take action to ensure that mergers take place within the Community on terms that do not differ markedly from member state to member state.

Lord Young of Graffham

The Government are participating at present in discussions with the Commission and other member states over a Commission proposal for a system of control of mergers with a Community dimension.