Kim Howells, Competition and Consumer Affairs
Minister, announced on 19th January 2000 that he had decided that
Alanod Aluminium-Veredlung GmbH & Co (Alanod) should provide
undertakings in respect of its acquisition of Metalloxyd Ano-Coil
Ltd (Ano-Coil). Following referral of the merger to the Competition
Commission (CC) on 15th July 1999, the CC submitted its report to
the Secretary of State on 26th November 1999. The report was
published on 19th January.
Dr Howells, accepted the recommendations of the CC
and the advice of the Director General of Fair Trading (DGFT) that
the merger may act against the public interest, and that
behavioural undertakings in relation to the supply of aluminium
coil in the UK would remedy the adverse effect of the merger. Both
the CC and the DGFT have suggested a cap on, and publication of,
Alanod’s prices.
The CC had found that the merger increased
Alanod’s market share to 75%, resulting in a clear loss of
competition and produced a dominant supplier with the incentive and
means to exploit its market prices. Previously, Ano-Coil and Alanod
each had 35% and 40% market shares respectively. Ano-Coil was also
an effective competitor in the UK and had the merger not occurred,
would have survived as a viable competitor. Thus, the merger
resulted in a clear loss of competition.
Source: DTI Press Release P/2000/31