Alanod obliged to give undertakings following acquisition of Ano-coil

United Kingdom

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