S.I. No. 42/1990 - Proposed Merger Or Take-Over Prohibition Order, 1990.

S.I. No. 42 of 1990.

PROPOSED MERGER OR TAKE-OVER PROHIBITION ORDER, 1990.

I, DESMOND O'MALLEY TD, Minister for Industry and Commerce, having considered the report of the Fair Trade Commission under section 8 (1) of the Mergers, Take-overs and Monopolies (Control) Act, 1978 (No. 17 of 1978), as amended by the Restrictive Practices (Amendment) Act, 1987 (No. 31 of 1987), of its investigation of the proposed merger or take-over involving the following enterprises, that is to say British Steel plc and C. Walker & Sons (Holdings) Ltd., being the proposed merger or take-over of which I was notified under section 5 of the first-mentioned Act on the 10th day of October 1989, having complied with section 9 (3) of the said first-mentioned Act and thinking that the exigencies of the common good so warrant, hereby, in exercise of the powers conferred on me by section 9 of the said Mergers, Take-overs and Monopolies (Control) Act, 1978 , as adapted by the Industry, Trade, Commerce and Tourism (Alteration of Name of Department and Title of Minister) Order, 1986 ( S.I. No. 41 of 1986 ), make the following Order:

1. This Order may be cited as the Proposed Merger or Take-over Prohibition Order, 1990.

2. In this Order—

"the takeover" means the proposed merger or takeover involving the following enterprises, that is to say, British Steel plc and C. Walker and Sons (Holdings) Ltd., insofar as it or a subsidiary of, or enterprise controlled by, it carries on business in the State, of which the Minister was notified pursuant to Section 5 of the Mergers, Takeovers and Monopolies (Control) Act, 1978 (No. 17 of 1978) on the 10th day of October, 1989;

"steel products" means steel products of the kinds supplied, distributed or provided in the State by British Steel plc or C. Walker and Sons (Holdings) Ltd., or any subsidiary of, or enterprise controlled by, either of those bodies.

3. The takeover is hereby prohibited.

4. The reasons for making this Order are that the Minister considers that—

( a ) if the takeover were effected, it would operate against the common good and, in particular—

(i) competition in the supply, provision and distribution of certain steel products in the State could be so restricted as to operate against the common good,

(ii) the level of employment in the metals and engineering industries in the State could be reduced, and

(iii) the interests of persons using certain steel products in the State for manufacture or construction could be prejudiced,

and

( b ) it is necessary, having regard to the exigencies of the common good, to ensure that effective competition in the supply, provision and distribution of steel products in the State is maintained.

5. ( a ) This Order is without prejudice to the obligation of British Steel plc and C. Walker and Sons (Holdings) Ltd., to notify the European Commission of the takeover in accordance with Article 66 of the Treaty establishing the European Coal and Steel Community, signed at Paris on the 18th day of April, 1951.

( b ) If this Order would, but for this paragraph, conflict with a decision of the European Commission under the Treaty aforesaid, this Order shall be subject to such limitation as is necessary to secure that it does not so conflict but shall otherwise be of full force and effect.

GIVEN under my Official Seal this 26th day of February, 1990.

DESMOND O'MALLEY,

Minister for Industry and Commerce.

EXPLANATORY NOTE.

The effect of this Order is to prohibit the proposed merger or take-over involving British Steel plc and C. Walker & Sons (Holdings) Ltd., insofar as it or a subsidiary of, or enterprise controlled by, it carries on business in the State.

The Order is effective from the date of its signature but may be annulled by a resolution of either House of the Oireachtas within 21 sitting days in either case.