For announcement of referral see DTI Press Notice P/2002/055

P&O Princess Cruises PLC/Royal Caribbean Cruises - Acquisition

Terms of Reference

Where 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 by or under control of P&O Princess Cruises PLC (a body corporate incorporated in the United Kingdom) will cease to be distinct from enterprises carried on by or under the control of Royal Caribbean Cruises Limited; and

(b) the value of the assets 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 20 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 these arrangements are the creation of such a situation; and

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

In relation to the question 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.

29 January 2002