Seán Ryan
Question:74 Mr. S. Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress, if any, made in the Competition Authority investigation into the take over of Balcas by Coillte Teoranta. [15934/98]
Written Answers. - Company Takeovers.
On 5 January 1998, I received a notification of a proposal 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 to the authority was to establish whether, in its opinion, the acquisition would be likely to prevent or restrict competition, or restrain trade in any goods or services, and would be likely to operate against the common good. In assessing 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.
Again, I considered the authority's report in light of these comments and views and having regard to all the comments I received and indeed all the circumstances of the proposal, I decided to prohibit the takeover in the interest of the common good. To give effect to my decision, I have made an order under section 9 of the Mergers and Takeovers (Control) Acts, 1978 to 1996, which I have laid before both Houses of the Oireachtas. I have also placed copies of the report of the Competition Authority in the Oireachtas Library.