Dáil Éireann Debate, Thursday - 27 April 2023
240. Deputy Brendan Griffin asked the Minister for Enterprise, Trade and Employment if he will forensically review the role of the CCPC in a failed merger involving a company (details supplied) in County Kerry; if he will consider the reasons for the intervention of the CCPC; his views on whether the actions of the CCPC in this scenario were anti-enterprise, unduly drawn out, and excessive; and if he will make a statement on the matter. [20090/23]
View answerSection 9 (5) of the Competition and Consumer Protection Act 2014 provides that the CCPC is independent in the performance of its functions. As investigations and enforcement matters generally are part of the day-to-day operational work of the Commission, as Minister of State of this Department I have no direct function in the matter.
Nevertheless, I have engaged with the CCPC on this matter who have informed me that this proposed merger was notified to the CCPC on 30 March 2022. A full (Phase 2) investigation was opened on 26 July 2022.
On 25 November 2022, the CCPC issued an ‘Assessment’ setting out the preliminary conclusions of the CCPC regarding the proposed acquisition to both parties as part of the merger review process.
In its Assessment the CCPC reached the preliminary conclusion that the proposed acquisition would have likely resulted in a substantial lessening of competition in certain geographic areas surrounding particular fuel depots in Co. Kerry in respect of each of:
• The supply of kerosene (home heating oil) to small customers
• The supply of Sulphur Free Gas Oil (agricultural or ‘green’ diesel) to small customers and
• The supply of road diesel to small customers.
Mergers that result in a substantial lessening of competition can typically be expected to result in higher prices and/or lower quality service for consumers.
The CCPC’s Assessment was not its final decision in respect of the proposed merger. The parties were both provided with the opportunity to respond to the CCPC’s preliminary conclusions in writing and orally. However, although the acquiring party informed the CCPC that it did not agree with the preliminary conclusions reached by the CCPC in its Assessment, it informed the CCPC on 12 December 2022 that it had decided not to proceed with acquisition and that it considered the proposed acquisition to be withdrawn. The CCPC’s investigation was therefore closed.
In cases where a final decision is made, parties can appeal a determination to block or clear a merger with conditions to the High Court.
