Rhone Poulenc/Shell Chem. [1994] IECA 273 (3rd February, 1994)

Rhone Poulenc/Shell Chem. [1994] IECA 273 (3rd February, 1994)

The acquisition agreement and associated restrictions are no more than necessary to secure the transfer of the business and do not offend section 4(1) of the Competition Act, 1991, given the competitive nature of the market and the limited scope and duration of the non-compete and confidentiality clauses.

Citation
[1994] IECA 273
Parties
Purchaser: Rhone Poulenc Ireland Ltd.; Vendor: Shell Chemicals Ireland Ltd.
Jurisdiction
Ireland
Procedural Posture
Competition Notification / Final Decision
Outcome
certificate granted; agreement does not offend section 4(1)
Legal Topics
Merger Control, Non Compete Clauses, Exclusive Distribution, Market Concentration
Competition Law Merger Control Non Compete Clauses Exclusive Distribution Market Concentration

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Parties

Rhone Poulenc Ireland Ltd.

Purchaser

Shell Chemicals Ireland Ltd.

Vendor

Procedural Posture

Competition Notification / Final Decision

Legal Issues

  1. 1 Does the acquisition agreement offend section 4(1) of the Competition Act, 1991?
  2. 2 Are the non-compete and confidentiality clauses anti-competitive?

Ratio Decidendi

The acquisition agreement and associated restrictions are no more than necessary to secure the transfer of the business and do not offend section 4(1) of the Competition Act, 1991, given the competitive nature of the market and the limited scope and duration of the non-compete and confidentiality clauses.

Court Disposition

certificate granted; agreement does not offend section 4(1)

Orders

  • The Competition Authority certifies that the agreement of 6 August 1992 for the acquisition of the seed treatment business of Shell by RPI does not offend against section 4(1) of the Competition Act, 1991.