For announcement of referral see DTI Press Notice P/2002/108

Cargill Incorporated/Montedison Group (Cerestar) - Acquisition

Terms of Reference

Whereas it appears to the Secretary of State that it is or may be the fact that arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a merger situation qualifying for investigation, as defined in section 64(8) of the Fair Trading Act 1973 ("the Act"), in that:

(a) enterprises carried on by or under the control of Cargill Incorporated will cease to be distinct from enterprises carried on by or under the control of the Montedison Group (one at least of which is carried on in the United Kingdom); and

(b) as a result, the condition specified in section 64(2) of the Act will prevail, or will do so to a greater extent, with respect to the supply of glucose syrups and blends in the United Kingdom.

Whereas the said arrangements as described in paragraph (a) if carried out will result in a concentration with a Community dimension within the meaning of Council Regulation (EEC) no 4064/89 of 21 December 1989 on the control of concentrations between undertakings ("the Regulation"); and

Whereas the Commission of the European Communities has, pursuant to Article 9(3)(b) of the Regulation, referred the case to the competent authorities of the United Kingdom:

Now, therefore, the Secretary of State, in exercise of her powers under sections 64, 69 and 75 of the Act, hereby refers to the Competition Commission ("the Commission"), for investigation and report within the period ending on 09 May 2002, the following questions:

(i) whether arrangements are in progress or in contemplation as described in paragraph (a) above which, if carried into effect, will result in the creation of a merger situation qualifying for investigation;

(ii) if events so require, whether the actual results of those arrangements are the creation of such a situation; and

(iii) if so, in either case, whether the creation of that situation may be expected to operate or (if events so require) operates against the public interest.

In relation to the questions in paragraph (i) and (ii) above, the Commission shall exclude from consideration one of paragraphs (a) and (b) of section 64(1) of the Act if they find the other satisfied.

In relation to the question in paragraph (iii) above, the Commission shall limit their consideration to such elements in, or possible consequences of, the creation of that situation which relate to the production and supply of glucose syrups and blends in the United Kingdom.
 

19 February 2002