Argyll Group Plc, R (on Application of) Monopolies and Mergers Commission [1986] EWCA Civ 8
Citation:Argyll Group Plc, R (on Application of) Monopolies and Mergers Commission [1986] EWCA Civ 8
Rule of thumb:When are the Government expected to investigate a merger for a potential breach of competition law? Anything over £100m should be considered, and anything over £1 billion should be investigated.
Judgment:
Where 2 large businesses in a sector of society are set to merge, or one is set to be bought over by another, then there can be an investigation to consider whether this is for the benefit of the market or not, ‘A merger reference means, for present purposes, any reference to the Monopolies and Mergers Commission (the Commission) with respect to the creation, or possible creation, of a merger situation qualifying for investigation... A merger situation qualifying for investigation within the meaning of Part V of the Act can, broadly speaking, be of one of two kinds: (a) A situation where two or more enterprises cease to be distinct enterprises and, as a result, a possible monopoly situation is brought into existence or enhanced... or (b) A situation where two or more enterprises cease to be distinct enterprises and, as a result, the value of the assets taken over exceeds £30,000,000... It will be seen therefore that if two enterprises are merged and the assets taken over exceed £30,000,000, a merger situation qualifying for investigation can arise even though before the merger one enterprise did not previously supply goods of the same description as the other enterprise. Thus a merger situation qualifying for investigation may arise simply because of the size of the two enterprises’ (in other words when there is a merger over £30 million – which will be larger now – then it can be subject to judicial review in the administrative law Courts)’. Lord Justice Neill
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