Rohan Construction/Rohcon [1994] IECA 301 (25th March, 1994)

The amended agreement, limiting non-compete clauses to four years, is no more than necessary to secure the transfer of goodwill and does not offend Section 4(1) of the Competition Act, 1991.

Citation: [1994] IECA 301
Parties: Vendor: Rohan Construction Limited; Party to Agreement: Mr. Kenneth Rohan; Purchaser: Rohcon Limited; Parent Company of Purchaser: Ascon Limited
Jurisdiction: Ireland
Procedural Posture: Competition Authority Notification Decision / Final Decision
Outcome: certificate issued; agreement does not offend Section 4(1)
Legal Topics: Non Compete Clauses, Sale of Business, Market Concentration, Goodwill Transfer

Competition Law Mergers and Acquisitions Non Compete Clauses Sale of Business Market Concentration Goodwill Transfer

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Parties

Rohan Construction Limited

Vendor

Mr. Kenneth Rohan

Party to Agreement

Rohcon Limited

Purchaser

Ascon Limited

Parent Company of Purchaser

Procedural Posture

Competition Authority Notification Decision / Final Decision

Legal Issues

1 Whether the sale of assets and goodwill with non-compete clauses offends Section 4(1) of the Competition Act, 1991
2 Whether the duration and scope of non-compete clauses are justified and necessary to secure the transfer of goodwill

Ratio Decidendi

The amended agreement, limiting non-compete clauses to four years, is no more than necessary to secure the transfer of goodwill and does not offend Section 4(1) of the Competition Act, 1991.

Court Disposition

certificate issued; agreement does not offend Section 4(1)

Orders

Certificate issued stating the agreement as amended does not offend Section 4(1) of the Competition Act, 1991