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Dáil Éireann debate -
Thursday, 13 Jul 1972

Vol. 262 No. 9

Ceisteanna—Questions. Oral Answers. - Company Take-Over.

100.

asked the Minister for Industry and Commerce if he will hold an inquiry in the national interest into the means by which a take-over company (name supplied) was set up some one and a half years ago with a half million pound investment by a banking group and which now commands a value of some £5.4 million and a net asset value on 30th June, 1972 of £4.3 million; and if he is aware of the tentative proposals to have this group taken over in turn by a similar major British consortium.

101.

asked the Minister for Industry and Commerce if he will make a statement in the national interest on the agreement reached between a take-over company (name supplied) and a fertiliser group (name supplied).

With your approval, a Cheann Comhairle, I propose to take Questions Nos. 100 and 101 together.

I have no statutory power to hold an inquiry of the kind requested by the Deputy or to prevent take-overs or mergers. I have, however, introduced in the Dáil today by long and short titles a Bill which will empower me to prohibit a proposed take-over or merger, or to require the division of an enterprise formed through a take-over or merger, where the arrangement restricts competition or endangers the continuity of essential supplies or services. I am also considering whether it is feasible to provide for control on grounds other than those I have mentioned.

I have no information about proposals for the take-over company mentioned by the Deputy to be taken over in turn by a similar major British consortium. As regards the reported agreement between the firm referred to in the Deputy's questions and a fertiliser firm, I note that the announcement of the agreement states that it "will place the two companies in a highly advantageous position to undertake major further expansion not only in Ireland but also in the broader European context". I would, of course, welcome this kind of expansion if it led to the creation of additional employment in Ireland.

May I thank the Minister for introducing the legislation. Will the Bill be circulated today?

No. It is introduced by Long and Short Titles. I hope it will be circulated within the next month.

In view of the absolute urgency of this legislation, will the Minister advise the major financial holding companies and the commercial bank involved in this type of operation of the legislation which will be enacted by the end of the year and that they should take this into consideration in future operations because it would seem that we will have a flood of these mergers between now and the passing of the Bill, which is long overdue?

I have indicated a couple of times already that it is my intention to introduce this measure and also that I hoped to take power under the Bill to look into mergers that had already taken place. The reiteration of the announcement arising from the introduction of the Bill at this stage should be duly noted by those concerned.

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