Electro Rent Corporation / Test Equipment Asset Management and Microlease merger inquiry

The CMA is investigating 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: 4.4.18

Contact

electrorent/microlease@cma.gsi.gov.uk

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.

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.

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.

Response to the phase 1 decision

Merger notice

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.

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.

Amendments/consents granted

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.

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.

Notice of extension of statutory period

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.

Extension of consideration of undertakings in lieu

8 August 2017: The CMA has extended the consideration of UILs until 19 October 2017.

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.

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.

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.

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.

Amendments/consents granted:

Contact

Please send written representations about any competition or public interest concerns to:

Mark Steenson
Competition and Markets Authority
Victoria House
Southampton Row
London
WC1B 4AD

Mark.Steenson@cma.gsi.gov.uk

Published 6 February 2017
Last updated 6 February 2018 + show all updates
  1. Provisional findings and appendices published.
  2. Summary of provisional findings and notice of possible remedies published.
  3. Derogation from interim order published.
  4. Issues statement, parties’ response to phase 1 decision, and merger notice published.
  5. Administrative timetable, interim order and directions to appoint a monitoring trustee published.
  6. Reference decision published.
  7. Inquiry group appointed.
  8. Reference decision announced and terms of reference published.
  9. Notice of extension published.
  10. Undertakings in lieu of reference consultation launched.
  11. Notice of extension published.
  12. Full text of the decision and decision that undertakings might be accepted published.
  13. CMA to consider undertakings announcement added.
  14. Decision announced: reference unless undertakings accepted.
  15. Launch of CMA merger inquiry and invitation to comment issued.
  16. Derogation published.
  17. Variation order published.
  18. First published.