Reference of Safeway Plc / ASDA stores Ltd to the Competition Commission
Merger 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:
- enterprises carried on by or under the control of Wal-Mart
Stores, Inc (at least one of which is carried on in the United Kingdom)
will cease to be distinct from enterprises carried on by or under
control of Safeway plc; and
- 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(1) of the Act, hereby refers to
the Competition Commission ("the Commission") for investigation
and report within the period ending on 12 August 2003, the following
questions:
- 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;
- if events so require, whether the actual results of those arrangements
are the creation of such a situation; and
- if so, whether the creation of that situation operates, or
may be expected to operate, against the public interest.
In relation to the question in paragraph (i) 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 is
satisfied.
19 March 2003
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