STS/Butler Merger Provisionally Cleared By CC

The Competition Commission ('CC') has provisionally cleared the completed acquisition by Sector Treasury Services Limited ('STS') of Butlers (a trading division of ICAP plc) which provides treasury management advisory ('TMA') services. 

Prior to the merger, both companies supplied (among other things) TMA services to local authorities in the UK under retainer contracts.  Treasury management is the process by which public and private sector bodies manage their cash flows and associated financial risks. It includes deciding when, for how long and with whom to invest surplus funds and from whom to borrow additional funds and on what terms.

The evidence suggested that if Butlers had not been bought by STS, its owners would have closed it anyway and wound down the existing contracts it held with local authorities.  As a result, the merger does not reduce the number of competing companies in this market.