Dubai International Capital LLC / Doncasters Group Ltd
OFT closed case: Completed acquisition by Dubai International Capital LLC of Doncasters Group Limited.
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 funds.
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 million.
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.