Electro Rent Corporation / Test Equipment Asset Management and Microlease merger inquiry
The CMA investigated the completed acquisition by Electro Rent Corporation of Test Equipment Asset Management and Microlease Inc.
Phase 2
Administrative timetable
Date of referral: 19.10.17
Statutory deadline: 30.5.18
- (26.3.18)
- (26.3.18)
Contact
Case closure summary
21 February 2019: Electro Rent Corporation has completed its sale of the Electro Rent UK business (including relevant contracts) to MCS Rentals, a purchaser approved by the CMA. This brings the merger investigation to a close.
- (21.2.19)
Penalty notice
15 February 2019: The CMA has published a notice (dated 12 February 2019) of a penalty imposed on Electro Rent under section 94A of the Enterprise Act 2002. The CMA imposed the penalty for a failure to comply, without reasonable excuse, with the requirements imposed on Electro Rent by the interim order issued by the CMA under section 81 of the Enterprise Act 2002.
- (15.2.19)
Remedy group appointed
31 July 2018: On 30 July 2018, the CMA appointed the following panel group members to the Electro Rent remedy group:
Susan Hankey, Jeremy Newman and David Thomas (Chair).
Final undertakings
27 July 2018: The CMA has accepted final undertakings and the reference has now been fully determined.
- (27.7.18)
- (27.7.18)
Notice of proposal to accept final undertakings
26 June 2018: The CMA gives notice of the proposal to accept final undertakings and is inviting comments by 5pm on Wednesday 11 July 2018.
- (26.6.18)
Penalty notice
12 June 2018: The CMA has published a notice (dated 11 June 2018) of a penalty imposed on Electro Rent under section 94A of the Enterprise Act 2002. The CMA imposed the penalty for a failure to comply, without reasonable excuse, with the requirements imposed on Electro Rent by the interim order issued by the CMA under section 81 of the Enterprise Act 2002.
- (served 11.6.18)
Final report
17 May 2018: The CMA has found that the merger between Electro Rent and Microlease may give rise to competition concerns in the rental supply of testing and measurement equipment in the UK.
- (17.5.18)
- (17.5.18)
Press release: CMA requires Electro Rent to sell its UK arm (17.5.18)
Provisional Findings
5 February 2018: The CMA has provisionally found that the merger between Electro Rent and Microlease may give rise to competition concerns in the rental supply of testing and measurement equipment in the UK.
- (6.2.18)
- (6.2.18)
- (5.2.18)
- (5.2.18)
- (5.2.18)
- News story: Electro Rent / Microlease merger could reduce competition (5.2.18)
Issues statement
23 November 2017: The issues statement sets out the scope of the inquiry. It outlines initial theories on what might be adversely affecting competition, but it does not set out findings or conclusions.
- (23.11.17)
Evidence
The publication of the evidence of any party on the CMA’s webpages does not indicate in any way endorsement by the CMA of the views expressed in the evidence or acceptance of that evidence. Publication in this way is designed to assist public understanding of the issues.
Responses to provisional findings
- (21.3.18)
Responses to remedies notice
- (26.2.18)
Response to the phase 1 decision
- (23.11.17)
Merger notice
- (23.11.17)
Directions to appoint a monitoring trustee
On 7 November 2017, the CMA directed Electro Rent Corporation, pursuant to the interim order dated 7 November, to appoint a monitoring trustee.
- (8.11.17)
Interim order
On 7 November 2017, the CMA made an interim order under section 81 of the Enterprise Act 2002 applying to Electro Rent Corporation, Electro Rent Europe NV and Team Equipment Asset Management Limited, in relation to the completed acquisition by Electro Rent Corporation of Team Equipment Asset Management Limited. The initial enforcement order of 1 February 2017 will cease to be in force on the date of making this order by virtue of section 72(6) of the Act.
- (8.11.17)
Amendments/consents granted
- (27.7.18)
- (27.7.18)
- (13.7.18)
- (7.6.18)
- (7.6.18)
- (7.6.18)
- (19.12.17)
Inquiry group appointed
The CMA appointed the inquiry group on 25 October 2017.
Simon Polito (Inquiry Chair), Jeremy Newman, Jayne Scott and David Thomas.
Terms of reference
19 October 2017: The CMA has referred Electro Rent Corporation’s acquisition of Test Equipment Asset Management and Microlease Inc. for an in-depth investigation.
- (19.10.17)
Phase 1
Statutory timetable
| Phase 1 date | Action |
|---|---|
| 7 July 2017 | Decision published |
| 14 June 2017 | Decision announced |
| 18 April to 3 May 2017 | Invitation to comment |
| 13 April 2017 | Launch of merger inquiry |
| 1 February 2017 | Initial enforcement order |
Reference decision
19 October 2017: The CMA has referred Electro Rent Corporation’s acquisition of Test Equipment Asset Management and Microlease Inc. for an in-depth investigation. The full text of the decision is available below.
- (30.10.17)
- News story: In-depth investigation into Electro Rent / Microlease merger (19.10.17)
Notice of extension of statutory period
- (28.9.17)
Undertakings in lieu of reference consultation: now closed
8 September 2017: We are consulting on proposed undertakings in lieu of a reference for the completed acquisition by Electro Rent Corporation of Test Equipment Asset Management and Microlease Inc.
- (8.9.17)
- (8.9.17)
Extension of consideration of undertakings in lieu
8 August 2017: The CMA has extended the consideration of UILs until 19 October 2017.
- (8.8.17)
CMA to consider undertakings offered
28 June 2017: The CMA considers that there are reasonable grounds for believing that the undertakings offered by the parties, or a modified version of them, might be accepted by the CMA under the Enterprise Act 2002. A copy of the decision is available below.
- (7.7.17)
Reference unless undertakings accepted
14 June 2017: The CMA has decided, on the information currently available to it, that it is or may be the case that this merger may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom. This merger will be referred for a phase 2 investigation unless the parties offer acceptable undertakings to address these competition concerns. The full text of the decision is available below.
- (7.7.17)
- News story: Electro Rent / Microlease merger inquiry finds competition concerns (14.6.17)
Invitation to comment: Now closed
18 April 2017: The CMA is considering whether it is or may be the case that this transaction has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
Launch of merger inquiry
18 April 2017: On 13 April the CMA announced the launch of its merger inquiry by notice to the parties.
- (18.4.17)
Initial enforcement order
On 1 February 2017, the CMA served an initial enforcement order under section 72(2) of the Enterprise Act 2002 on Electro Rent Corporation, in relation to the completed acquisition by Electro Rent Corporation of Test Equipment Asset Management and Microlease Inc.
- (7.2.17)
- (6.2.17)
Amendments/consents granted:
- (3.3.17)
Last updated 21 February 2019 + show all updates
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Case closure summary published.
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Final penalty notice published.
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Remedy group announced.
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Derogations, final undertakings and notice of acceptance of undertakings published.
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Derogation published.
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Notice of proposal to accept final undertakings published.
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Penalty notice published.
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Derogations published.
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Final report, appendices and glossary published. Link to press release published.
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Notice of extension published and administrative timetable updated.
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Response to provisional findings published under Evidence.
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Response to remedies notice published.
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Provisional findings and appendices published.
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Summary of provisional findings and notice of possible remedies published.
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Derogation from interim order published.
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Issues statement, parties’ response to phase 1 decision, and merger notice published.
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Administrative timetable, interim order and directions to appoint a monitoring trustee published.
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Reference decision published.
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Inquiry group appointed.
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Reference decision announced and terms of reference published.
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Notice of extension published.
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Undertakings in lieu of reference consultation launched.
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Notice of extension published.
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Full text of the decision and decision that undertakings might be accepted published.
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CMA to consider undertakings announcement added.
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Decision announced: reference unless undertakings accepted.
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Launch of CMA merger inquiry and invitation to comment issued.
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Derogation published.
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Variation order published.
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First published.