Mr. John M. TaylorTo ask the Secretary of State for Trade and Industry, pursuant to his answer of 2 February 1999,Official Report, columns 584–85, regarding Lucas Varity, if it is his policy that his Department would not intervene in the takeover on grounds other than competition. [69699]
§ Dr. Howells[holding answer 8 February 1999]: If any proposed acquisition were to fall to the UK authorities under the Fair Trading Act 1973, the Director General of Fair Trading (DGFT) would advise my right hon. Friend the Secretary of State for Trade and Industry whether or not the merger should be referred to the Monopolies and Mergers Commission for investigation. In formulating his advice on merger cases, the DGFT takes into account any representations he receives on competition and other public interest issues. The Secretary of State would take his decision in the light of the DGFT's advice. Each case is considered on its own merits.
If any proposed acquisition were to fall to the EC Merger Regulation the European Commission would assess the acquisition's effect on competition. In commenting on the acquisition we would therefore not normally give our views on grounds other than competition.
Mr. John M. TaylorTo ask the Secretary of State for Trade and Industry, pursuant to his answer of 2 February 1999,Official Report, columns 584–85, regarding Lucas Varity, if he will take steps to establish whether the takeover will fall within the jurisdictions of (a) the UK authorities and (b) the European Commission. [69698]
§ Dr. Howells[holding answer 8 February 1999]: The European Commission would decide whether any proposed acquisition fell within the scope of the EC Merger Regulation. If it were not to fall within the scope of the EC Merger Regulation it would fall to the UK authorities under the Fair Trading Act 1973.