- Y Diweddaraf sydd Ar Gael (Diwygiedig)
- Gwreiddiol (Fel y'i Deddfwyd)
Dyma’r fersiwn wreiddiol (fel y’i gwnaed yn wreiddiol).
(1)Subsection (2) applies where the Secretary of State has reasonable grounds for suspecting that it is or may be the case that a special merger situation has been created or arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a special merger situation.
(2)The Secretary of State may give a notice to the OFT (in this Part “a special intervention notice”) if he believes that it is or may be the case that one or more than one consideration specified in section 58 is relevant to a consideration of the special merger situation concerned.
(3)For the purposes of this Part a special merger situation has been created if—
(a)no relevant merger situation has been created because of section 23(1)(b) and (2)(b); but
(b)a relevant merger situation would have been created if those enactments were disregarded;
and the conditions mentioned in subsection (4) are satisfied.
(4)The conditions mentioned in this subsection are that, immediately before the enterprises concerned ceased to be distinct—
(a)at least one of the enterprises concerned was carried on in the United Kingdom or by or under the control of a body corporate incorporated in the United Kingdom; and
(b)a person carrying on one or more of the enterprises concerned was a relevant government contractor.
(5)For the purposes of deciding whether a relevant merger situation has been created or whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation, sections 23 to 32 (read together with section 34) shall apply for the purposes of this Chapter as they do for the purposes of Chapter 1 but subject to subsection (6).
(6)In their application by virtue of subsection (5) sections 23 to 32 shall have effect as if—
(a)for paragraph (a) of section 23(9) there were substituted—
“(a)in relation to the giving of a special intervention notice, the time when the notice is given;
(aa)in relation to the making of a report by the OFT under section 61, the time of the making of the report;
(ab)in the case of a reference which is treated as having been made under section 62(2) by virtue of section 64(2), such time as the Commission may determine; and”;
(b)the references to the OFT in section 24(2)(a) and (b) included references to the Secretary of State;
(c)the references to the OFT in sections 25(1) to (3), (6) and (8) and 31 included references to the Secretary of State;
(d)the references to the OFT in section 25(4) and (5) were references to the Secretary of State;
(e)the reference in section 25(4) to section 73 were a reference to paragraph 3 of Schedule 7;
(f)the reference in section 25(12) to one extension were a reference to one extension by the OFT and one extension by the Secretary of State;
(g)the powers to extend time-limits under section 25 as applied by subsection (5) above, and the power to request information under section 31(1) as so applied, were not exercisable by the OFT or the Secretary of State before the giving of a special intervention notice;
(h)in subsection (1) of section 31 for the words “section 22” there were substituted “section 62(2)” and, in the application of that subsection to the OFT, for the word “deciding” there were substituted “enabling the Secretary of State to decide”;
(i)in the case of the giving of special intervention notices, the references in sections 23 to 32 to the making of a reference or a reference were, so far as necessary, references to the giving of a special intervention notice or a special intervention notice; and
(j)the references to the OFT in section 32(2)(a) to (c) and (3) were construed in accordance with the above modifications.
(7)No more than one special intervention notice shall be given under subsection (2) in relation to the same special merger situation.
(8)In this section “relevant government contractor” means—
(a)a government contractor—
(i)who has been notified by or on behalf of the Secretary of State of information, documents or other articles relating to defence and of a confidential nature which the government contractor or an employee of his may hold or receive in connection with being such a contractor; and
(ii)whose notification has not been revoked by or on behalf of the Secretary of State; or
(b)a former government contractor who was so notified when he was a government contractor and whose notification has not been revoked by or on behalf of the Secretary of State.
(9)In this section—
“defence” has the same meaning as in section 2 of the Official Secrets Act 1989 (c. 6); and
“government contractor” has the same meaning as in the Act of 1989 and includes any sub-contractor of a government contractor, any sub-contractor of that sub-contractor and any other sub-contractor in a chain of sub-contractors which begins with the sub-contractor of the government contractor.
(1)A special intervention notice shall state—
(a)the special merger situation concerned; and
(b)the consideration specified in section 58 or considerations so specified which are, or may be, relevant to the special merger situation concerned.
(2)Where the Secretary of State believes that it is or may be the case that two or more considerations specified in section 58 are relevant to a consideration of the special merger situation concerned, he may decide not to mention in the special intervention notice such of those considerations as he considers appropriate.
(3)A special intervention notice shall come into force when it is given and shall cease to be in force when the matter to which it relates is finally determined under this Chapter.
(4)For the purposes of this Part, a matter to which a special intervention notice relates is finally determined under this Chapter if—
(a)the time within which the OFT is to report to the Secretary of State under section 61 has expired and no such report has been made;
(b)the Secretary of State decides to accept an undertaking or group of undertakings under paragraph 3 of Schedule 7 instead of making a reference under section 62;
(c)the Secretary of State otherwise decides not to make a reference under that section;
(d)the Commission cancels such a reference under section 64(1);
(e)the time within which the Commission is to prepare a report under section 65 and give it to the Secretary of State has expired and no such report has been prepared and given to the Secretary of State;
(f)the time within which the Secretary of State is to make and publish a decision under section 66(2) has expired and no such decision has been made and published;
(g)the Secretary of State decides under subsection (2) of section 66 otherwise than as mentioned in subsection (5) of that section;
(h)the Secretary of State decides under subsection (2) of section 66 as mentioned in subsection (5) of that section but decides neither to accept an undertaking under paragraph 9 of Schedule 7 nor to make an order under paragraph 11 of that Schedule; or
(i)the Secretary of State decides under subsection (2) of section 66 as mentioned in subsection (5) of that section and accepts an undertaking under paragraph 9 of Schedule 7 or makes an order under paragraph 11 of that Schedule.
(5)For the purposes of this Part the time when a matter to which a special intervention notice relates is finally determined under this Chapter is—
(a)in a case falling within subsection (4)(a), (e) or (f), the expiry of the time concerned;
(b)in a case falling within subsection (4)(b), the acceptance of the undertaking or group of undertakings concerned;
(c)in a case falling within subsection (4)(c), (d) or (g), the making of the decision concerned;
(d)in a case falling within subsection (4)(h), the making of the decision neither to accept an undertaking under paragraph 9 of Schedule 7 nor to make an order under paragraph 11 of that Schedule; and
(e)in a case falling within subsection (4)(i), the acceptance of the undertaking concerned or (as the case may be) the making of the order concerned.
(1)Subsection (2) applies where the Secretary of State has given a special intervention notice in relation to a special merger situation.
(2)The OFT shall, within such period as the Secretary of State may require, give a report to the Secretary of State in relation to the case.
(3)The report shall contain—
(a)advice from the OFT on the considerations relevant to the making of a reference under section 22 or 33 which are also relevant to the Secretary of State’s decision as to whether to make a reference under section 62; and
(b)a summary of any representations about the case which have been received by the OFT and which relate to any consideration mentioned in the special intervention notice concerned and which is or may be relevant to the Secretary of State’s decision as to whether to make a reference under section 62.
(4)The report shall include a decision as to whether the OFT believes (disregarding section 59(4)(b)) that it is, or may be, the case that a special merger situation has been created or (as the case may be) arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a special merger situation.
(5)The report may, in particular, include advice and recommendations on any consideration mentioned in the special intervention notice concerned and which is or may be relevant to the Secretary of State’s decision as to whether to make a reference under section 62.
(6)The OFT shall carry out such investigations as it considers appropriate for the purposes of producing a report under this section.
(1)Subsection (2) applies where the Secretary of State—
(a)has given a special intervention notice in relation to a special merger situation; and
(b)has received a report of the OFT under section 61 in relation to the matter.
(2)The Secretary of State may make a reference to the Commission if he believes that it is or may be the case that—
(a)a special merger situation has been created;
(b)one or more than one consideration mentioned in the special intervention notice is relevant to a consideration of the special merger situation concerned; and
(c)taking account only of the relevant consideration or considerations concerned, the creation of that situation operates or may be expected to operate against the public interest.
(3)The Secretary of State may make a reference to the Commission if he believes that it is or may be the case that—
(a)arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a special merger situation;
(b)one or more than one consideration mentioned in the special intervention notice is relevant to a consideration of the special merger situation concerned; and
(c)taking account only of the relevant consideration or considerations concerned, the creation of that situation may be expected to operate against the public interest.
(4)No reference shall be made under this section if the making of the reference is prevented by section 69(1) or paragraph 4 of Schedule 7.
(5)The Secretary of State, in deciding whether to make a reference under this section, shall accept the decision of the OFT included in its report under section 61 by virtue of subsection (4) of that section.
(6)A reference under this section shall, in particular, specify—
(a)the subsection of this section under which it is made;
(b)the date on which it is made; and
(c)the consideration or considerations mentioned in the special intervention notice which the Secretary of State believes are, or may be, relevant to a consideration of the special merger situation concerned.
(1)The Commission shall, on a reference under section 62(2), decide whether a special merger situation has been created.
(2)The Commission shall, on a reference under section 62(3), decide whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a special merger situation.
(3)If the Commission decides that a special merger situation has been created or that arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a special merger situation, it shall, on a reference under section 62, decide whether, taking account only of the consideration or considerations mentioned in the reference, the creation of that situation operates or may be expected to operate against the public interest.
(4)The Commission shall, if it has decided on a reference under section 62 that the creation of a special merger situation operates or may be expected to operate against the public interest, decide the following additional questions—
(a)whether action should be taken by the Secretary of State under section 66 for the purpose of remedying, mitigating or preventing any of the effects adverse to the public interest which have resulted from, or may be expected to result from, the creation of the special merger situation concerned;
(b)whether the Commission should recommend the taking of other action by the Secretary of State or action by persons other than itself and the Secretary of State for the purpose of remedying, mitigating or preventing any of the effects adverse to the public interest which have resulted from, or may be expected to result from, the creation of the special merger situation concerned; and
(c)in either case, if action should be taken, what action should be taken and what is to be remedied, mitigated or prevented.
(1)The Commission shall cancel a reference under section 62(3) if it considers that the proposal to make arrangements of the kind mentioned in that reference has been abandoned.
(2)The Commission may, if it considers that doing so is justified by the facts (including events occurring on or after the making of the reference concerned), treat a reference made under subsection (2) or (3) of section 62 as if it had been made under subsection (3) or (as the case may be) (2) of that section; and, in such cases, references in this Part to references under those enactments shall, so far as may be necessary, be construed accordingly.
(3)Where, by virtue of subsection (2), the Commission treats a reference made under subsection (2) or (3) of section 62 as if it had been made under subsection (3) or (as the case may be) (2) of that section, paragraphs 1, 2, 7 and 8 of Schedule 7 shall, in particular, apply as if the reference had been made under subsection (3) or (as the case may be) (2) of that section instead of under subsection (2) or (3) of that section.
(4)Subsection (5) applies in relation to any undertaking accepted under paragraph 1 of Schedule 7, or any order made under paragraph 2 of that Schedule, which is in force immediately before the Commission, by virtue of subsection (2), treats a reference made under subsection (2) or (3) of section 62 as if it had been made under subsection (3) or (as the case may be) (2) of that section.
(5)The undertaking or order shall, so far as applicable, continue in force as if—
(a)in the case of an undertaking or order which relates to a reference under subsection (2) of section 62, accepted or made in relation to a reference made under subsection (3) of that section; and
(b)in the case of an undertaking or order which relates to a reference made under subsection (3) of that section, accepted or made in relation to a reference made under subsection (2) of that section;
and the undertaking or order concerned may be varied, superseded, released or revoked accordingly.
(6)The Secretary of State may at any time vary a reference under section 62.
(7)The Secretary of State shall consult the Commission before varying any such reference.
(8)Subsection (7) shall not apply if the Commission has requested the variation concerned.
(9)No variation by the Secretary of State under this section shall be capable of altering the consideration or considerations specified in the reference or the period permitted by virtue of section 65 within which the report of the Commission under that section is to be prepared and given to the Secretary of State.
(1)The Commission shall prepare a report on a reference under section 62 and give it to the Secretary of State within the period permitted by virtue of this section.
(2)The report shall, in particular, contain—
(a)the decisions of the Commission on the questions which it is required to answer by virtue of section 63;
(b)its reasons for its decisions; and
(c)such information as the Commission considers appropriate for facilitating a proper understanding of those questions and of its reasons for its decisions.
(3)Sections 51 and 52 (but not section 53) shall apply for the purposes of a report under this section as they apply for the purposes of a report under section 50.
(4)The Commission shall carry out such investigations as it considers appropriate for the purpose of producing a report under this section.
(1)Subsection (2) applies where the Secretary of State has received a report of the Commission under section 65 in relation to a special merger situation.
(2)The Secretary of State shall, in connection with a reference under section 62(2) or (3), decide the questions which the Commission is required to decide by virtue of section 63(1) to (3).
(3)The Secretary of State shall make and publish his decision under subsection (2) within the period of 30 days beginning with the receipt of the report of the Commission under section 65; and subsection (8) of section 54 shall apply for the purposes of this subsection as it applies for the purposes of subsection (5) of that section.
(4)In making his decisions under subsection (2), the Secretary of State shall accept the decisions of the report of the Commission under section 65 as to whether a special merger situation has been created or whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a special merger situation.
(5)Subsection (6) applies where the Secretary of State has decided under subsection (2) that—
(a)a special merger situation has been created or arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a special merger situation;
(b)at least one consideration which is mentioned in the special intervention notice concerned is relevant to a consideration of the special merger situation concerned; and
(c)taking account only of the relevant consideration or considerations concerned, the creation of that situation operates or may be expected to operate against the public interest;
and has so decided, and published his decision, within the period required by subsection (3).
(6)The Secretary of State may take such action under paragraph 9 or 11 of Schedule 7 as he considers to be reasonable and practicable to remedy, mitigate or prevent any of the effects adverse to the public interest which have resulted from, or may be expected to result from, the creation of the special merger situation concerned.
(7)In making a decision under subsection (6), the Secretary of State shall, in particular, have regard to the report of the Commission under section 65.
(1)Subsection (2) applies where—
(a)the Secretary of State has reasonable grounds for suspecting that it is or may be the case that—
(i)a relevant merger situation has been created or that arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation; and
(ii)a concentration with a Community dimension (within the meaning of the European Merger Regulations), or a part of such a concentration, has thereby arisen or will thereby arise;
(b)a reference which would otherwise be possible under section 22 or 33 is prevented from being made under that section in relation to the relevant merger situation concerned by virtue of Community law or anything done under or in accordance with it; and
(c)the Secretary of State is considering whether to take appropriate measures to protect legitimate interests as permitted by article 21(3) of the European Merger Regulations.
(2)The Secretary of State may give a notice to the OFT (in this section “a European intervention notice”) if he believes that it is or may be the case that one or more than one public interest consideration is relevant to a consideration of the relevant merger situation concerned.
(3)A European intervention notice shall state—
(a)the relevant merger situation concerned;
(b)the public interest consideration or considerations which are, or may be, relevant to a consideration of the relevant merger situation concerned; and
(c)where any public interest consideration concerned is not finalised, the proposed timetable for finalising it.
(4)Where the Secretary of State believes that it is or may be the case that two or more public interest considerations are relevant to a consideration of the relevant merger situation concerned, he may decide not to mention in the intervention notice such of those considerations as he considers appropriate.
(5)No more than one European intervention notice shall be given under subsection (2) in relation to the same relevant merger situation.
(6)Where the Secretary of State has given a European intervention notice mentioning a public interest consideration which, at that time, is not finalised, he shall, as soon as practicable, take such action as is within his power to ensure that it is finalised.
(7)For the purposes of deciding whether a relevant merger situation has been created or whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation, sections 23 to 32 (read together with section 34) shall apply for the purposes of this section as they do for the purposes of Chapter 1 but subject to subsection (8).
(8)In their application by virtue of subsection (7) sections 23 to 32 shall have effect as if—
(a)references in those sections to the decision-making authority were references to the Secretary of State;
(b)for paragraphs (a) and (b) of section 23(9) there were substituted “, in relation to the giving of a European intervention notice, the time when the notice is given”;
(c)the references to the OFT in section 24(2)(a) and (b) included references to the Secretary of State;
(d)sections 25, 31 and 32 were omitted; and
(e)the references in sections 23 to 29 to the making of a reference or a reference were, so far as necessary, references to the giving of a European intervention notice or a European intervention notice.
(9)Section 42(3) shall, in its application to this section and section 68, have effect as if for the words “intervention notice” there were substituted “European intervention notice”.
(1)The Secretary of State may by order provide for the taking of action, where a European intervention notice has been given, to remedy, mitigate or prevent effects adverse to the public interest which have resulted from, or may be expected to result from, the creation of a European relevant merger situation.
(2)In subsection (1) “European relevant merger situation” means a relevant merger situation—
(a)which has been created or will be created if arrangements which are in progress or in contemplation are carried into effect;
(b)by virtue of which a concentration with a Community dimension (within the meaning of the European Merger Regulations), or a part of such a concentration, has arisen or will arise; and
(c)in relation to which a reference which would otherwise have been possible under section 22 or 33 was prevented from being made under that section by virtue of Community law or anything done under or in accordance with it.
(3)Provision made under subsection (1) shall include provision ensuring that considerations which are not public interest considerations mentioned in the European intervention notice concerned may not be taken into account in determining whether anything operates, or may be expected to operate, against the public interest.
(4)Provision made under subsection (1) shall include provision—
(a)applying with modifications sections 23 to 32 for the purposes of deciding for the purposes of this section whether a relevant merger situation has been created or whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation;
(b)requiring the OFT to make a report to the Secretary of State before a reference is made;
(c)enabling the Secretary of State to make a reference to the Commission;
(d)requiring the Commission to investigate and report to the Secretary of State on such a reference;
(e)enabling the taking of interim and final enforcement action.
(5)An order under this section may include provision (including provision for the creation of offences and penalties, the payment of fees and the delegation of functions) corresponding to any provision made in, or in connection with, this Part in relation to intervention notices or special intervention notices and the cases to which they relate.
(6)In this section “European intervention notice” has the same meaning as in section 67.
(1)No reference shall, subject to subsection (2), be made under section 22, 33, 45 or 62 in relation to a transfer of a newspaper or of newspaper assets to which section 58(1) of the Fair Trading Act 1973 (c. 41) applies.
(2)Subsection (1) does not apply in a case falling within section 59(2) of the Act of 1973.
(3)In this section “transfer of a newspaper or of newspaper assets” has the meaning given by section 57(2) of the Act of 1973.
(1)For sections 32 to 35 of the Water Industry Act 1991 (c. 56) (special provision for water merger references) there shall be substituted—
Subject to section 33 below, it shall be the duty of the OFT to make a merger reference to the Competition Commission if the OFT believes that it is or may be the case—
(a)that arrangements are in progress which, if carried into effect, will result in a merger of any two or more water enterprises; or
(b)that such a merger has taken place otherwise than as a result of the carrying into effect of arrangements that have been the subject of a reference by virtue of paragraph (a) above.
(1)The OFT shall not make a merger reference under section 32 above in respect of any actual or prospective merger of two or more water enterprises if it appears to the OFT—
(a)that the value of the turnover of the water enterprise being taken over does not exceed or, as the case may be, would not exceed £10 million; or
(b)that the only water enterprises already belonging to the person making the take over are enterprises each of which has a turnover the value of which does not exceed or, as the case may be, would not exceed £10 million.
(2)For the purposes of subsection (1)(a) above, the value of the turnover of the water enterprise being taken over shall be determined by taking the total value of the turnover of the water enterprises ceasing to be distinct enterprises and deducting—
(a)the turnover of any water enterprise continuing to be carried on under the same ownership and control; or
(b)if there is no water enterprise continuing to be carried on under the same ownership and control, the turnover which, of all the turnovers concerned, is the turnover of the highest value.
(3)For the purposes of subsection (1)(b) above—
(a)every water enterprise ceasing to be a distinct enterprise and whose turnover is to be deducted by virtue of subsection (2)(a) or (b) above shall be treated as a water enterprise belonging to the person making the take over; and
(b)water enterprises shall be treated as separate enterprises so far as they are carried on by different companies holding appointments under Chapter 1 of this Part.
(4)For the purposes of this section the turnover of a water enterprise shall be determined in accordance with such provisions as may be specified in regulations made by the Secretary of State.
(5)Regulations under subsection (4) above may, in particular, make provision as to—
(a)the amounts which are, or which are not, to be treated as comprising an enterprise’s turnover; and
(b)the date or dates by reference to which an enterprise’s turnover is to be determined.
(6)Regulations under subsection (4) above may, in particular, make provision enabling the Secretary of State or the OFT to determine matters of a description specified in the regulations (including any of the matters mentioned in paragraphs (a) and (b) of subsection (5) above).
(7)The Secretary of State may by regulations amend subsection (1) above so as—
(a)to alter the sum for the time being mentioned in paragraph (a) of that subsection or otherwise to modify the condition set out in that paragraph; or
(b)to alter the sum for the time being mentioned in paragraph (b) of that subsection or otherwise to modify the condition set out in that paragraph.
(8)Regulations under subsection (7) above—
(a)shall not make any modifications in relation to mergers on or before the coming into force of the regulations; and
(b)may, in particular, include supplemental, consequential or transitional provision amending or repealing any provision of this section.
(9)References in this section to enterprises being carried on under the same ownership and control shall be construed in accordance with Part 3 of the 2002 Act.
The provisions of Schedule 4ZA to this Act shall have effect with respect to mergers of water enterprises.
(1)In this Chapter (including Schedule 4ZA)—
“enterprise” has the same meaning as in Part 3 of the 2002 Act; and
“water enterprise” means an enterprise carried on by a water undertaker.
(2)References in this Chapter (including Schedule 4ZA), in relation to any two or more enterprises, to the merger of those enterprises are references to those enterprises ceasing, within the meaning of Part 3 of the 2002 Act, to be distinct enterprises; and sections 27 and 29 of that Act and any provision made under section 34 of that Act (time at which enterprises cease to be distinct) shall have effect for the purposes of this Chapter (including Schedule 4ZA) as they have effect for the purposes of that Part.
(3)Nothing in sections 32 to 34 above (including Schedule 4ZA) shall prejudice any power of the OFT or the Secretary of State, in a case in which, or to any extent to which, the OFT is not required to make a reference under section 32 above, to make a reference under Part 3 of the 2002 Act in respect of any actual or prospective merger of two or more water enterprises.
(4)Where two or more enterprises have merged or will merge as part of transactions or arrangements which also involve an actual or prospective merger of two or more water enterprises, Part 3 of the 2002 Act shall apply in relation to the actual or prospective merger of the enterprises concerned excluding the water enterprises; and references in that Part to the creation of a relevant merger situation shall be construed accordingly.
(5)Subject to subsections (3) and (4), Part 3 of the 2002 Act shall not apply in a case in which the OFT is required to make a reference under section 32 above except as applied by virtue of Schedule 4ZA.”
(2)Before Schedule 4A to the Act of 1991 there shall be inserted, as Schedule 4ZA, the Schedule set out in Schedule 6 to this Act.
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