The UK Competition Commission clears a three to two merger in the insurance sector holding that the transaction would not give rise to a substantial lessening of competition (Hampden / CBS)

Introduction On 4 July 2006, the U.K. Office of Fair Trading (OFT) referred the completed acquisition of CBS Private Capital Limited’s Lloyd’s members’ agency business (CBSPC) by Hampden Agencies Limited (Hampden) to the Competition Commission (CC) under the U.K. Enterprise Act 2002. After an in-depth review by the CC into the competitive aspects of the transaction, the CC announced on December 2006 that it had decided to grant unconditional clearance. This case shows that even in a market with just three players, the acquisition of a competitor may be cleared where the effect on competition can be shown to be low. The Enterprise Act requires that, where the OFT reasonably considers that a transaction may give rise to a “substantial lessening of competition” (SLC) on the relevant market,

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  • Winston & Strawn (London)

Quotation

Peter Crowther, The UK Competition Commission clears a three to two merger in the insurance sector holding that the transaction would not give rise to a substantial lessening of competition (Hampden / CBS), 1 December 2006, e-Competitions December 2006, Art. N° 37347

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