Mergers with a Public Interest Element
Conditions for Secretary of State to intervene in mergers to protect certain public interest considerations.
Secretary of State (SoS) for BIS retains certain powers under the Enterprise Act 2002 in order to intervene and make decisions in certain mergers on the basis of public interest. However, the SoS may only do this where a public issue has been specified within the Act. Currently the Enterprise Act specifies three public interest considerations. They are:
- National Security
- Plurality of the Media
- Stability of the UK Financial System
In merger cases where the SoS has intervened, he will received a report from the OFT on the public interest issue (from Ofcom in media plurality cases). On the basis of that that report, any competition issues raised by the OFT and any other information brought to his attention the SofS can decide to clear the merger, clear it subject to conditions or refer it to the CC for further investigation.
Details of previous cases, copies of reports and decisions are published and can be viewed on the following pages:
The SofS may also intervene and make decisions in those mergers that are too small to be investigated by the OFT. In these rare cases, the SoS may issue a special intervention notice instructing the OFT to submit a report on the public interest issue. All previous cases of special interventions have been in the defence sector on the basis of protecting national security. Previous cases with reports and decisions are published and can be viewed through the links on the right.
Mergers between water and sewerage companies
A special regime exists for mergers between water and sewerage companies. These are considered under sections 32-35 of the Water Industry Act 1991, as amended (from 29 December 2004) by the Enterprise Act and the Water Act.
