13th Feb 2006 12:00
Office of Fair Trading13 February 2006 27/06 13 February 2006 OFT ACCEPTS LADBROKE UNDERTAKINGS INSTEAD OF REFERENCE TO THE COMPETITION COMMISSION The OFT has today accepted the undertakings offered by Hilton Group plc andLadbroke Racing (Reading) Limited (Ladbroke). It has decided that theundertakings offered address the competition concerns which arose from thecompleted acquisition by Hilton Group plc through Ladbroke of Jack Brown(Bookmaker) Limited (Jack Brown). This transaction will not now be referred tothe Competition Commission. The transaction raised competition concerns in relation to the supply of bettingservices through licensed betting offices (LBOs) in four local areas in the UK. In lieu of reference to the Competition Commission, the parties have offered tomake divestments in the four local areas where competition concerns were raised. The OFT considers that this proposed undertaking will clearly address theconcerns identified in its decision of 27 September 2005 (see press notice 179/05). Vincent Smith, Director of Competition Enforcement at the OFT said: 'Customers tend to place bets at betting shops within walking distance of theirhome or work. The loss of Jack Brown as a competing betting shop in these fourlocal areas would have removed customers' ability to choose which shop theyplace their bets at. We are content that Hilton Group plc and Ladbroke haveoffered divestment undertakings which will, when implemented, address ourcompetition concerns arising from this transaction.' NOTES 1. The Reference Test - The OFT has a duty to make a reference to the CC if theOFT believes that it is or may be the case that a relevant merger situation hasbeen created; and the creation of that situation has resulted, or may beexpected to result, in a substantial lessening of competition within any marketor markets in the United Kingdom for goods or services. 2. Under the Enterprise Act 2002 a relevant merger situation is created if twoor more enterprises have ceased to be distinct enterprises; and the value of theturnover in the United Kingdom of the enterprise being taken over exceeds £70million; or as a result of the transaction, in relation to the supply of goodsor services of any description, a 25% share of supply in the UK (or asubstantial part thereof) is created or enhanced. 3. Under section 73 of the Enterprise Act 2002 the OFT may, instead of making areference, and for the purpose of remedying, mitigating or preventing thesubstantial lessening of competition concerned, or any adverse effect which hasor may have resulted from it or may be expected to result from it, accept fromsuch of the parties concerned as it considers appropriate undertakings to takesuch action as it considers appropriate. In doing so, the OFT will have regardto the need to achieve as comprehensive a solution as is reasonable andpracticable to the substantial lessening of competition and any adverse effectsresulting from it. 4. Before accepting any such undertakings under Schedule 10 of the EnterpriseAct 2002, the OFT shall give notice of the proposed undertakings and willconsider any representations made in accordance with that notice. 5. The text of these decisions will be placed on the Office of Fair Trading'sweb site at www.oft.gov.uk and will also appear in the Office's Weekly Gazetteas soon as is reasonably practicable. MEDIA enquiries: 020 7211+ Corinne Gladstone 8899 Julia Smith 8898Roger Hislop 8133 Kate Wilcox 8901Julia Thompson 8900 Mike Ricketts [email protected] of hours: mobile: 07774 134814 messages: 020 7211 8961Copies of press notices: xt. 8993http://www.oft.gov.ukPUBLIC enquiries: 0845 7224499 [email protected] OFT reports and consumer information leaflets are available free from:OFT, PO Box 366, Hayes UB3 1XB 0800 389 3158 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ladbrokes Coral