Vol. 490 No. 2
82 Mr. Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment whether the decision taken under the Mergers, Take Overs and Monopolies (Control) Act, 1978 to prohibit the acquisition by Coillte Teoranta of an 80 per cent stake in the Balcas group has implications for any future proposals by Coillte Teoranta seeking to make an equity investment in the sawmilling sector; and if she will make a statement on the matter. [9846/98]
On 5 January 1998 I received a notification of a proposaal under the Mergers and Takeovers (Control) Acts, 1978 to 1996, whereby Coillte Teoranta intended to acquire a majority of the issued share capital of Balcas Limited, a sawmilling company. Under section 7 of the Mergers Acts, I can either approve a proposed merger or takeover, or refer a proposal to the Competition Authority for investigation. Under section 9 of the Mergers Acts, I can then decide whether to permit the proposal, either conditionally or unconditionally, or to prohibit it by Order.
I decided to exercise the option of referral to the Competition Authority in this case. The purpose of referring the proposal was to establish whether, in the opinion of the authority, the acquisition would be likely to prevent or restrict competition, restrain trade in any goods or services, or be likely to operate against the common good. In assesing the likely effect of a proposal on the common good, the authority has regard to a number of criteria. These criteria are continuity of supplies or services, level of employment, regional development, rationalisation of operations in the interests of greater efficiency, research and development, increased production, access to markets, shareholders and partners, employees and consumers.
Following its investigation, the Competition Authority reported to me and recommended by a three to one majority that the takeover should be prohibited on competition grounds. In the interest of fair procedures, the parties to the proposal and interested third parties were circulated with the authority's report in order to give them the opportunity to comment on it. I also consulted the Ministers for the Marine and Natural Resources and Finance for their views.
