HC Deb 07 December 1987 vol 124 c35W
Mr. Teddy Taylor

To ask the Chancellor of the Duchy of Lancaster (1) if he will make a statement on the proposals submitted by the Commission of the Common Market on a requirement that Commission approval be required for mergers and takeovers of large United Kingdom companies; and what was the outcome of the meeting on 30 November when this proposal was discussed;

(2) if he will make a statement on the outcome of the meeting of the Council of Ministers on 30 November in relation to the preparation of a directive to give the Commission powers on the control of mergers;

(3) why he concurred with the Commission proposal on the preparation of the directive designed to give the Commission powers over mergers and takeovers; and if he will make a statement.

Mr. Maude

The proposed EC regulation on the control of concentrations (the "merger control" regulation) was discussed at the Internal Market Council on 30 November, where I represented the United Kingdom. The United Kingdom reserved its position on the principle of such a regulation, indicating that it had substantial difficulties with the proposal.

Mr. Teddy Taylor

To ask the Chancellor of the Duchy of Lancaster under what powers the European Economic Community Commission is seeking to initiate a court action on their jurisdiction over mergers and takeovers; and if he will make a statement.

Mr. Maude

The EC Commission has indicated that it may seek to apply articles 85 and 86 of the treaty of Rome to mergers.

Mr. Teddy Taylor

To ask the Chancellor of the Duchy of Lancaster if his Department is treating the proposed directive on mergers as one which falls to be considered by majority vote at the EEC Council of Ministers; and if he will make a statement.

Mr. Maude

The proposed EC regulation on the control of concentrations (draft merger control regulation) is based on articles 87 and 235 of the treaty of Rome. Its adoption would therefore require unanimous agreement of the Council of Ministers.