Barlo Group/Kingspan Group [1994] IECA 302 (25th March, 1994)

Barlo Group/Kingspan Group [1994] IECA 302 (25th March, 1994)

The acquisition does not have as its object or effect the prevention, restriction, or distortion of competition within the State, given the presence of imports, lack of entry barriers, and the failing firm defence. The non-compete provisions are reasonable and necessary to protect goodwill and do not offend Section 4(1).

Citation
[1994] IECA 302
Parties
Acquirer: Barlo Group plc; Acquirer Subsidiary: Mellstock Limited; Vendor: Kingspan Veha Limited; Vendor Parent: Kingspan Group plc
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification / Final Decision
Outcome
certificate issued; acquisition approved
Legal Topics
Mergers, Market Concentration, Non Compete Clauses, Failing Firm Defence
Competition Law Mergers Market Concentration Non Compete Clauses Failing Firm Defence

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Parties

Barlo Group plc

Acquirer

Mellstock Limited

Acquirer Subsidiary

Kingspan Veha Limited

Vendor

Kingspan Group plc

Vendor Parent

Procedural Posture

Competition Authority Notification / Final Decision

Legal Issues

  1. 1 Whether the acquisition of Kingspan Veha Limited's radiator business by Barlo Group plc prevents, restricts, or distorts competition under Section 4(1) of the Competition Act, 1991.
  2. 2 Whether the non-compete provisions in the agreement offend Section 4(1) of the Competition Act, 1991.

Ratio Decidendi

The acquisition does not have as its object or effect the prevention, restriction, or distortion of competition within the State, given the presence of imports, lack of entry barriers, and the failing firm defence. The non-compete provisions are reasonable and necessary to protect goodwill and do not offend Section 4(1).

Court Disposition

certificate issued; acquisition approved

Orders

  • The Competition Authority certifies that the agreement of 7 February 1994 between Barlo Group plc, Mellstock, Kingspan Group plc and Kingspan Veha Ltd. for the acquisition by Barlo Group plc of the radiator manufacturing and design business of Kingspan Veha Ltd. in Wicklow town does not offend against Section 4(1)...