The OFT sent Capita Group an Inquiry Letter on 13 April 2011
requesting further details of this acquisition which had received
significant press coverage and in response to internal concerns that
the deal may give the parties a significant share of supply in
respect of treasury consultancy services to housing associations.
The parties responded on 12 May 2011, advising that the merger
completed on 28 April 2008 and that the assets acquired did not
include treasury consultancy services to housing associations and
that the merger did not fall within the OFT's jurisdiction. An
Invitation to Comment was published on 13 May 2011, with a date for
responses of 26 May 2011.
A response to the ITC was received from a competitor who advised
that the parties overlapped in respect of software used by housing
associations. This response (in anonymised form) was put back to the
parties who commented that Tribal did not supply such software and
that there was no overlap in this activity.
On the basis of the information available to it, the Office of Fair
Trading has decided that the anticipated acquisition of the health
and government consulting businesses of Tribal Group plc by Capita
Group plc does not qualify for investigation under the mergers
provision of the Enterprise Act 2002 (the Act), because neither the
UK turnover test nor the share of supply test in section 23 of the
Act is met. A relevant merger situation has, therefore, not been