The CMA is to consider whether undertakings offered by Dover and Wayne remove the need to carry out an in-depth merger investigation.
Earlier this month, the Competition and Markets Authority (CMA) announced that Dover Corporation’s (Dover) anticipated acquisition of Wayne Fueling Systems (Wayne) would face an in-depth investigation – unless the companies could address concerns over the merger’s effect on competition in the supply of fuel dispensers in the UK.
Both companies are global manufacturers and suppliers of industrial equipment and components, including fuel dispensers and automation and payment systems for retail and commercial fuel stations.
Dover and Wayne have proposed two alternative undertakings to the CMA: either (i) Dover would release Tokheim SSD from its obligation to only distribute Dover’s fuel dispensers in the UK, and Dover would also take measures to support Tokheim SSD distributing a rival manufacturer’s fuel dispensers in the UK; or (ii) Wayne would sell its UK distribution business to a buyer, to be approved by the CMA.
The CMA has decided that there are reasonable grounds for believing that one of these proposals, or a modified version of them, might be acceptable to remedy the competition concerns it has identified.
The CMA has until 19 December 2016 to consider whether to accept a remedy, although the CMA may decide to extend this deadline to 16 February 2017 if it decides that there are special reasons for doing so.
As part of its process, the CMA will undertake a public consultation.
If the CMA does not accept one of the remedies proposed, the merger will be referred for an in-depth investigation.
All information relating to this investigation can be found on the case page.