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Investigations

Inquiry reports

1987


Tate & Lyle PLC and Ferruzzi Finanziaria SpA and S & W Berisford PLC
A report on the existing and proposed mergers

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Summary



On 19 May 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 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:

(a) enterprises carried on by or under the control of S & W Berisford PLC(a body corporate incorporated in the United Kingdom) will cease to be distinct from enterprises carried on by or under the control of Tate & Lyle PLC; and

(b) the value of the assets which will be taken over exceeds £30 million:

Now, therefore, the Secretary of State, in exercise of his powers under sections 69(2) and 75 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.

In relation to the question whether a merger situation qualifying for investigation will be created if the arrangements herein referred to are carried into effect the Commission shall exclude from consideration section 64(l)(a) of the Act.

(Signed) R E ALLEN
An Assistant Secretary
Department of Trade and Industry

19 May 1986

On 2 July 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 S & W Berisford 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 Ferruzzi Finanziaria;and

(b) the value of the assets which will be taken over exceeds £30 million:

And whereas it further 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 further merger situation qualifying for investigation defined as aforesaid in that:

(a) enterprises carried on by or under the control of S & W Berisford PLC will cease to be distinct from enterprises carried on by or under the control of Ferruzzi Finanziaria;

(b) the value of the assets which will be taken over exceeds £30 million:

Now, therefore, the Secretary of State in exercise of his powers under sections 64, 69(2) and 75 of the Act hereby refers these matters to the Monopolies and Mergers Commission for investigation and report within a period of six months beginning on the 19th day of May 1986.

In relation to the question whether a merger situation qualifying for investigatio has been created or will be created if the arrangements herein referred tare carried into effect the Commission shall exclude from consideration section 64(l)(a) of the Act.

 

(Signed) R E ALLEN
An Assistant Secretary
Department of Trade and Industry

2 July 1986

On 12 November 1986 it was announced that the Secretary of State for Trade and Industry had agreed that the reporting period for both references should be extended to 18 January 1987.

On 20 May 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 first reference should be discharged through a group consisting of six members of the Commission including, as Chairman, Mr H H Hunt. On 14 July 1986 the Chairman of the
Commission directed that the functions of the Commission in relation to the second reference should be discharged by the same group of six members. The 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 inserted in:

 
The Times
Financial Times
 
The Guardian
Daily Telegraph
 
The Grocer
The Food Trade Review
 
Confectionery Production
The Confectioner, Tobacconist,
 
Food Manufacture
Newsagent
 
British Business
Farmers' Weekly

In addition we sought evidence and views from the Ministry of Agriculture, Fisheries and Food (MAFF), the Industry Department for Scotland, the Confederation of British Industry, the Trades Union Congress, the National Fanners' Union and other farming interests, sugar merchants and brokers, ACP sugar export agencies and their Governments, trade associations and manufacturer-users, wholesalers and retailers of sugar.

We received a considerable amount of written evidence from the three main parties. Members of the Group, accompanied by staff, visited Tate & Lyle's refinery at Silvertown, the British Sugar factory at Peterborough and Ferruzzi's factory at Genoa.

We held hearings with representatives of Tate & Lyle and Berisford (three each), Ferruzzi (two), MAFF, the ACP High Commissioners' Sugar Committee, two Members of Parliament, trades unions, sugar merchants and brokers, two manufacturer-users, one wholesaler and one retailer of sugar.

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 thank all those who helped us in our inquiry, particularly the three companies principally involved.








Full text



Contents

Chapters

 
Chapter 1 Introduction
Chapter 2 The sugar market in the UnitedKingdom and the European Community
Chapter 3 S& W Berisford PLC
Chapter 4 British Sugar PLC
Chapter 5 Tate & Lyle PLC
Chapter 6 The Ferruzzi Group
Chapter 7 Events before and during the merger inquiries
Chapter 8 Views of the Ministry of Agriculture, Fisheries and Food
Chapter 9 Views of farming interests
Chapter 10 Views of merchants and brokers
Chapter 11 Views of consumers of sugar
Chapter 12 Views of other parties
Chapter 13 Views of S & W Berisford PLC and British Sugar PLC
Chapter 14 Views of Tate & Lyle PLC
Chapter 15 Views of Ferruzzi Finanziaria SpA and of Agricola Finanziaria SpA
Chapter 16 Conclusions
   
Appendices  
 



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