32/03

22 August 2003

CC SEEKS DTI PERMISSION TO DROP SAINSBURY INQUIRY

Competition Commission Chairman Sir Derek Morris has written to the Department of Trade and Industry, to seek its consent to “lay aside the reference”, relating to the proposed acquisition by J Sainsbury plc of 171 Somerfield stores from the “Springwater” bidding group, made on 30 July 2003.

The move follows J Sainsbury plc telling the Commission that they have abandoned the proposal to make arrangements for the acquisition, within the terms of section 75(5) of the Fair Trading Act 1973.

The Commission will therefore no longer be requiring evidence.

Notes to Editors

1. The reference was made by Patricia Hewitt, Secretary of State for Trade and Industry, under The Fair Trading Act 1973 (see DTI Press Notice P/2003/424) which empowers the Secretary of State to refer to the Competition Commission actual or proposed mergers which create or increase a market share of 25% of the supply of particular goods or services in the UK or a substantial part of the UK, or involve the transfer of assets exceeding 70 million.
2. Section 75(5) of the Act provides that, if it appears to the Commission that the proposal to make arrangements such as are mentioned in the reference have been abandoned, it shall, if the Secretary of State consents, lay the reference aside.
3. Further information can be obtained from the Commission’s website at: http://www.competition-commission.org.uk
4. Enquiries should be directed to Francis Royle, Press Officer, Tel: 0207 271 0242