OFT closed case: Anticipated acquisition by Cholet Acquisitions Limited of Waste Recycling Group plc.
Affected market: Waste management
The OFT's decision on reference under section 33 given on 29 July 2003
Waste Recycling Group plc (WRG) principal activities are the receiving, processing, recycling and disposing of waste materials. It also engages in a limited amount of quarrying and operates a number of energy from waste projects for the generation of electricity from landfill gas. WRG's UK turnover was £305.5 million for the year ended 31 December 2002.
Cholet Acquisitions Limited (Cholet) is a new company with no current trading activities formed for the purposes of the acquisition, by Terra Firma Investments(GP)2 Ltd, part of the Terra Firma Group. None of the investments within the Terra Firma Group's portfolio relate to waste collection and recycling, quarrying or electricity generation.
As a result of this transaction Cholet and WRG will cease to be distinct. The UK turnover of WRG exceeds £70 million, so that the turnover test in section 23(1)(b) of the Enterprise Act 2002 (the Act) is satisfied. A relevant merger situation has therefore been created.
There is no horizontal overlap between the activities of the parties, nor are there any vertical links between them. There is also no risk of any conglomerate effects arising. The merger does not appear to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
This merger will therefore not be referred to the Competition Commission under section 33(1) of the Act.