United Utilities Plc/ Bronica Ltd [1996] IECA 476 (16th December, 1996)

United Utilities Plc/ Bronica Ltd [1996] IECA 476 (16th December, 1996)

The bond facility and management services agreement offends Section 4(1) as it restricts competition by allowing NWWG to exercise control over a business it has sold, but satisfies Section 4(2) as it is necessary for the continued operation of JE(I)L, does not eliminate competition, and contributes to economic progress. Therefore, a licence is granted for five years.

Citation
[1996] IECA 476
Parties
Notifying Party: United Utilities Plc; Notifying Party: Bronica Ltd; Subject Company: Jones Environmental Limited (JEL); Subsidiary: Jones Environmental (Ireland) Limited (JE(I)L); Covenantor/executive: Christopher Bateman; Covenantor/executive: Barry Fenton
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification and Decision / Final Decision and Licence Grant
Outcome
Licence granted for bond facility and management services agreement under Section 4(2) of the Competition Act, 1991.
Legal Topics
Management Buyout, Bond Facility Agreement, Service Contracts, Restrictive Agreements, Licence Under Competition Act
Competition Law Management Buyout Bond Facility Agreement Service Contracts Restrictive Agreements Licence Under Competition Act

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Parties

United Utilities Plc

Notifying Party

Bronica Ltd

Notifying Party

Jones Environmental Limited (JEL)

Subject Company

Jones Environmental (Ireland) Limited (JE(I)L)

Subsidiary

Christopher Bateman

Covenantor/executive

Barry Fenton

Covenantor/executive

Procedural Posture

Competition Authority Notification and Decision / Final Decision and Licence Grant

Legal Issues

  1. 1 Whether the notified agreements offend Section 4(1) of the Competition Act, 1991
  2. 2 Whether the bond facility and management services agreement satisfies the requirements for a licence under Section 4(2)

Ratio Decidendi

The bond facility and management services agreement offends Section 4(1) as it restricts competition by allowing NWWG to exercise control over a business it has sold, but satisfies Section 4(2) as it is necessary for the continued operation of JE(I)L, does not eliminate competition, and contributes to economic progress. Therefore, a licence is granted for five years.

Court Disposition

Licence granted for bond facility and management services agreement under Section 4(2) of the Competition Act, 1991.

Orders

  • Licence applies from 29th March, 1996 to 28th March, 2001.
  • No conditions attached to the licence.