For announcement of referral see OFT Press Notice PN115/03
Anticipated acquisition by Stena AB of certain assets operated
by the peninsular and oriental steam navigation company of
the Irish Sea
Terms of Reference
1. Whereas in exercise of its duty under section 33(1) of
the Enterprise Act 2002 ('the Act') the Office of Fair Trading
('the OFT') believes that it is or may be the case that -
(a) arrangements are in progress or in contemplation which,
if carried into effect, will result in the creation of a relevant
merger situation in that:
(i) Stena AB ('Stena') will acquire certain assets currently
used by The Peninsular and Oriental Steam Navigation Company
(a body incorporated by Royal Charter in the United Kingdom)
('P&O') to supply ferry services on the Irish Sea between
Liverpool and Dublin and between Fleetwood and Larne such
that enterprises carried on by or under the control of P&O
will cease to be distinct from enterprises carried on by
or under the control of Stena; and
(ii) as a result, the condition specified in section 23(4)
of the Act will prevail to a greater extent; and
(b) the creation of that situation may be expected to result
in a substantial lessening of competition within a market
or markets in the United Kingdom for services;
now, therefore, the OFT, in exercise of its duty under section
33 of the Act and its power under section 36(5) of the Act,
hereby makes a reference to the Competition Commission ('the
Commission').
2. In relation to the question whether a relevant merger
situation will be created, the Commission shall exclude from
consideration one of subsections (1) and (2) of section 23
of the Act if they find that the other is satisfied.
Pat Edwards
Director of Legal Division
22 August 2003
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