Trusthouse Forte PLC and enterprises belonging to Hanson
Trust PLC
A report on the merger situation
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Summary
On 2 October 1986 the Department of Trade and Industry sent
to the Commission the following reference:
Whereas it appears to the Secretary of State that it is or
may be the fact that a merger situation qualifying for investigation,
as defined in section 64(8) of the Fair Trading Act 1973 ('
the Act'), has been created in that:
(a) enterprises carried on by or under the
control of Hanson Trust PLC (a body corporate incorporated
in the United Kingdom) have within the six months
preceding the date of this reference ceased to be distinct
from enterprises
carried on by or under the control of Trusthouse Forte PLC;
and
(b) the value of the assets taken over exceeds
£30 million;
Now, therefore, the Secretary of State in exercise
of his powers under section 64 of the Act hereby refers the
matter to the Monopolies and Mergers Commission for investigation
and report within a period of six months beginning with the
date of this reference.
(Signed) R E ALLEN
An Assistant Secretary
Department of Trade and Industry
2 October 1986
On 3 October 1986, in a press release announcing
the reference, the Department stated that the Secretary of
State's decision to make a reference was ' motivated by concern
for the effects of the acquisition on competition in the roadside
restaurant market, especially on trunk roads between towns'.
On 6 October 1986 the Chairman of the Commission,
acting under section 4 of the Fair Trading Act 1973 and Part
II of Schedule 3 thereto, directed that the functions of the
Commission in relation to the Trusthouse Forte reference should
be discharged through a group consisting of six members of
the Commission, including himself as Chairman. On 5 November
1986 he appointed a seventh member (Mr Carmichael) to the
group. On 20 January 1987 one member of the group (Mr Kelly)
resigned, having been prevented by illness from taking part
in the inquiry. The resulting composition of the group is
indicated in the list of members which prefaces this report.
Notices inviting interested parties to submit
evidence to the Commission were placed in:
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The Daily Telegraph |
Catering and Licensing Review |
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Financial Times Food |
Food and Drink |
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Guardian |
Food Manufacture |
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Caterer and Hotel Keeper |
Food Trade Review |
In addition we sought evidence and views from
Government departments, the Confederation of British Industry,
the Trades Union Congress, the relevant trade associations
and organisations representing consumers' interests, and from
restaurant owners, retailers and wholesalers operating in
the roadside catering market. The views of many of these who
responded are summarised in Chapter 5.
We also commissioned a market survey from RBL
Forecast Ltd, to form a clearer idea ofmotorists' views of
the roadside catering market and the use made of various types
of establishment. The results are summarised in Chapter 3.
We received a written submission from Trusthouse
Forte PLC.
We held a number of hearings: two with Trusthouse
Forte, and others with trade and consumers' associations,
and operators in the field of roadside catering.
Some of the evidence obtained in the course
of our inquiry was of a confidential nature; our report contains
only such information as we consider necessary for an understanding
of our conclusions.
We should like to place on record our thanks
to all those who helped us in our inquiry and particularly
to the company principally concerned.
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