Affected market: Precision engineered components
The OFT’s decision on reference under section 22 given on 17 March
2006. Full text published 5 April 2006.
Dubai International Capital LLC (DI) is a private equity investment
company with a focus on large buyouts, development capital deals and
Doncasters Group Limited (Doncasters) is a manufacturer of precision
engineered complex components, sub-assemblies and systems for
applications in aerospace, industrial gas turbines, automotive
turbochargers, medical devices and other specialist industries. In the
year ended 31 December 2005, Doncasters’ UK turnover amounted to £95
DI's acquisition of Doncasters is by signed agreement announced on 14
December 2005. An informal submission having been filed with the OFT on
14 February, the administrative target date for the OFT’s decision is
11 April 2006.
As a result of this transaction DI and Doncasters have ceased to be
distinct. Doncasters’ turnover exceeds £70 million and the turnover
test in section 23(1)(b) of the Enterprise Act 2002 (the Act) is
therefore satisfied. The OFT therefore believes that it is or may be the
case that a relevant merger situation has 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 22(1) of the Act.