Unum Limited and Swiss Life plc cancellation of merger reference

The Competition Commission has cancelled the reference concerning the proposed acquisition by Unum Limited of the employee benefits business of Swiss Life (UK) plc.

The reference was made to the Commission on 31 October 2003 by the Office of Fair Trading under section 33 of the Enterprise Act 2002. The terms of reference required the Commission to examine:

• whether arrangements were in progress or in contemplation which, if carried into effect, would result in the creation of a relevant merger situation in that enterprises carried on by or under the control of Unum Ltd will cease to be distinct from enterprises carried on by or under the control of Swiss Life (UK) plc; and
• if so, whether the creation of that situation may be expected to result in a substantial lessening of competition in relation to the supply of group risk insurance products in the United Kingdom.

The Commission has received assurances from Unum Limited and from Swiss Life plc that the proposed arrangements concerning Swiss Life’s group risk business have been abandoned and that, in particular, the agreements under which the acquisitions were to be made have been terminated. The Chairman of the Commission, Sir Derek Morris, is satisfied that Unum has, within the terms of section 37(1) of the Enterprise Act 2002, abandoned the proposal to make arrangements of the kind mentioned in the reference. He has consequently cancelled the reference in accordance with his powers under Schedule 7 to the Competition Act 1998.

This cancellation is published in accordance with requirements laid down by sections 107(2)(a) and 107(4) of the Enterprise Act 2002.