§ 54. Mrs. McCurleyasked the Secretary of State for Trade and Industry if he is yet in a position to say when he expects to reach a decision on the Monopolies and Mergers Commission report on the proposed bid for the British Sugar Corporation by Tate and Lyle and Ferruzzi; and if he will make a statement.
§ Mr. HowardThe report of the Monopolies and Mergers Commission (MMC) was published today (25 February). It concludes that the proposed acquisitions by Tate and Lyle plc of S and W Berisford plc and by Ferruzzi Finanziaria of Berisford's wholly-owned subsidiary, British Sugar plc, may be expected to operate against the public interest and should not be allowed. The MMC also concluded that Ferruzzi's existing shareholding in S and W Berisford may be expected to operate against the public interest and recommends that it should be reduced. In accordance with the advice of the Director General of Fair Trading, the Secretary of State for Trade and Industry has accepted those recommendations.
The Secretary of State has therefore asked the Director General of Fair Trading to consult Tate and Lyle and Ferruzzi with a view to obtaining undertakings not to proceed with their proposals to acquire S and W Berisford and British Sugar, respectively; and, in respect of Ferruzzi's existing shareholding in Berisford, to reduce that shareholding to 15 per cent. over two years, with a limitation on the exercise of voting rights in the interim period.
A copy of the report and the Secretary of State's decision has been placed in the Library of the House.