SPO.L Regulatory News (SPO)

12 Jun 2007 07:01

Competition Commission12 June 2007 News Release 34/07 12 June 2007 SPORTECH/VERNONS MERGER Statement of issues The Competition Commission (CC) has today published an issues statement as partof its inquiry into the anticipated acquisition by Sportech plc of the Vernonsfootball pools business of Ladbrokes plc. The CC has been asked to decide whether the acquisition may be expected toresult in a substantial lessening of competition in any market or markets withinthe UK for goods or services including the supply of football pools. The acquisition would mean that Sportech, which already owns the Littlewoods andZetters football pools, would operate the three main football pools operators inthe UK. The merger was referred by the Office of Fair Trading (OFT) on 3 May 2007 andthe CC is expected to report by 17 October 2007. The issues statement follows the initial process of gathering information, viewsand evidence; and identifies the specific questions and areas the inquiry isexamining. This statement will form the basis for hearings with Sportech,Ladbrokes, and other interested parties. The full issues statement is available on the CC website atwww.competition-commission.org.uk/inquiries/ref2007/sportech/index.htm. Itexamines issues such as: (a) definition of the relevant markets affected by the merger; (b) the approach the CC will take in assessing the competitive effects of themerger; and (c) the counterfactual-what may have been expected to happen in the absence ofthe merger. If the CC considers that the merger may be expected to result in a substantiallessening of competition, it will consider whether and, if so, what remediesmight be appropriate, taking into account any customer benefits that might arisefrom the acquisition. The CC will issue any remedies statement, should this berequired, at about the time it publishes its provisional findings. The issues statement should not be seen as implying that the CC has identifiedany competition concerns-the CC has yet to reach any conclusions on thisinquiry. The purpose of making the issues statement public is to inform allinterested parties and give them an opportunity to raise any further points withthe CC. Anyone wishing to comment further on any of the issues raised is requested to doso by 26 June 2007 by email to edwin.james@cc.gsi.gov.uk or in writing to: Inquiry Secretary (Sportech/Vernons merger inquiry)Victoria HouseSouthampton RowLondonWC1B 4AD The CC will now continue to gather evidence in this inquiry and will publish itsprovisional findings according to the administrative timetable available on theCC website. Notes for editors 1. The CC is an independent public body, which carries out investigationsinto mergers, markets, and the regulated industries. 2. The Enterprise Act 2002 empowers the OFT to refer to the CC, forinvestigation and report, completed or proposed mergers which would give themerged group a share of supply in the UK (or a substantial part of the UK) of 25per cent or more, or where the UK turnover associated with the enterprise beingacquired is over £70 million. 3. The CC has a 24-week period in which it is required to publish itsreport, which may be extended by no more than eight weeks if it considers thatthere are special reasons why the report cannot be published within that period.It is required to report by 17 October 2007, but intends to do so sooner. 4. Further information on the CC and its procedures, including its policyon the provision of information and the disclosure of evidence, can be obtainedfrom its website at: www.competition-commission.org.uk. 5. Enquiries should be directed to Siobhan Allen on 020 7271 0242 (emailsiobhan.allen@cc.gsi.gov.uk. This information is provided by RNS The company news service from the London Stock Exchange