Merger Update

Merger update - review of undertakings

The OFT is currently reviewing the following undertakings given under the Fair Trading Act 1973, which were signed on 18 December 2003 and varied on 3 April 2006. The undertakings were given to address competition concerns arising in respect of a particular merger situation:

Undertakings given by Centrica plc and Centrica Storage Limited pursuant to Section 88 of the Fair Trading Act 1973 in relation to Centrica plc's acquisition of Dynegy Storage Ltd and Dynegy Onshore Processing UK Limited

Centrica plc and Centrica Storage Ltd, by reason of change of circumstances, believe that the Undertakings are no longer appropriate and are seeking a review. The change in circumstances include changes in market conditions since 2003 and a change in the legal framework, as a result of the introduction of the new European Third Package requirements on storage operators (Directive 2009/73/EC, Regulation (EC) No. 715/2009). Following the review, the OFT will advise the Competition Commission on whether there has been a relevant change of circumstances such that the undertakings can be removed, varied, or superseded.

Before reaching any final decision, interested parties are invited to give their views to the OFT.

Representations should be made in writing by 1 June 2010 to:

Lisa Hughes

Office of Fair Trading

Fleetbank House

2-6 Salisbury Square

London EC4Y 8JX

[email protected]