HC Deb 19 November 1991 vol 199 c117W
Mr. Haselhurst

To ask the Secretary of State for Trade and Industry what period he will allow for negotiation of undertakings relating to a hostile bid under section 75G of the Fair Trading Act 1973 as amended in 1989 to protect the public need for relevant information.

Mr. Redwood

The timetable established for negotiating undertakings under section 75G of the Fair Trading Act 1973 will depend on the circumstances of each particular case. The Secretary of State will wish to secure undertakings as soon as practicable while ensuring that third parties are given a reasonable opportunity to comment on what might be appropriate to remedy the adverse effects expected to arise from the merger situation.

Mr. Haselhurst

To ask the Secretary of State for Trade and Industry what is the degree of proof a hostile bidder under section 75G of the Fair Trading Act 1973 as amended in 1989 must provide to satisfy him that assets acquired in a hostile bid will be sold to avoid a reference to the Monopolies and Mergers Commission.

Mr. Redwood

Undertakings given by a company under section 75G of the Fair Trading Act 1973 to divest or separate part of a merged business in lieu of a reference to the Monopolies and Mergers Commission are enforceable in the courts. Alternatively, the Secretary of State may make an order to remedy the expected adverse effects of the merger when it appears to him that an undertaking has not been or will not be fulfilled.

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