13th Feb 2006 12:00
Office of Fair Trading13 February 2006 26/06 13 February 2006 OFT ACCEPTS WILLIAM HILL UNDERTAKINGS INSTEAD OF REFERENCE TO THE COMPETITION COMMISSION The OFT has decided today to accept the undertakings offered by William Hillplc. It has decided that the undertakings offered address the competitionconcerns which arose from the completed acquisition by William Hill plc of thelicensed betting office business of Stanley plc. This transaction will not nowbe referred to the Competition Commission. The transaction raised competition concerns in relation to the supply of bettingservices through licensed betting offices (LBOs) in around 80 local areas of theUK. In lieu of reference to the Competition Commission, the parties have offered tomake divestments in 78 local areas, where competition concerns were raised. TheOFT considers that this proposed undertaking will clearly address the concernsidentified in its decision of 1 August 2005 (see press release 144/05). Vincent Smith, Director of Competition Enforcement of the OFT said: 'The loss of Stanley plc as a competitor in the supply of betting servicesthrough betting shops raised competition concerns in 78 local areas. This meantthat choice for customers, who in most cases tend to place a bet at a bettingshop within walking distance of their home or work, would have been eithereliminated or reduced. However, we are content that the divestments offered byWilliam Hill plc will, when implemented, address our competition concerns inthis 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 per cent 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 the OFT shall give notice of theproposed undertakings under Schedule 10 of the Enterprise Act 2002, andconsidered 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 8900Julia Thompson 8901 Mike Ricketts [email protected] Out of hours: mobile: 07774 134814 messages: 020 7211 8961Copies of press notices: Ext. 8993http://www.oft.gov.uk PUBLIC 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:
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