For announcement of referral see DTI Press Notice P/2002/279

Group 4 Falck A/S and The Wackenhut Corporation acquisition

Terms of Reference

Whereas it appears to the Secretary of State that it is or may be the case 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 Group 4 Falck A/S will cease to be distinct from enterprises carried on by or under the control of the Wackenhut Corporation (at least one of which is carried on in the United Kingdom); and

(b) the value of the assets to be taken over exceeds £70 million.

Now, therefore, the Secretary of State, in exercise of her powers under sections 64, 69(2) and 75 of the Act, hereby refers to the Competition Commission ("the Commission"), for investigation and report within the period ending on 30 August 2002, the following questions:

(i) whether arrangements are in progress or in the contemplation as described in paragraph (a) above which, if carried into effect, will result in the creation of 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 paragraphs (i) and (ii) above, the Commission shall exclude from consideration one of the paragraphs (a) and (b) of section 64(1) of the Act if they find the other satisfied.

09 May 2002