The OFT has referred to the CC the anticipated acquisition by Ratcliff Palfinger Limited of the commercial vehicle tail lifts spare parts business of Ross & Bonnyman Limited. Tail lifts are hydraulic platforms at the rear of vehicles which allow for goods and/or passengers to be lifted on and off a vehicle.
In November 2010 Ross & Bonnyman announced that it had ceased to manufacture commercial vehicle tail lifts. In considering the effects of the merger, the OFT considered whether the merger with Ratcliff Palfinger had influenced Ross & Bonnyman's decision to exit the commercial vehicle tail lifts business. Having assessed the evidence the OFT believes that the decision to exit may indeed have been influenced by the merger. On this basis, the OFT assessed the merger as if Ross & Bonnyman had continued to operate in the commercial vehicle tail lifts market.
The OFT found that the parties are two of the three largest suppliers of tail lifts in the UK and compete closely with one another. The OFT therefore concluded that, in removing one of the three largest players, the merger raises a realistic prospect of a substantial lessening of competition in the supply of column tail lifts in the UK. On this basis, the OFT was required to consider not only the impact of the deal on the directly affected spare parts business, but also its impact in the primary market for column tail lifts for commercial vehicles.
Amelia Fletcher, OFT Chief Economist, and decision maker in this case, said that 'given the parties' respective positions in the market for commercial vehicle tail lifts, and the evidence surrounding Ross & Bonnyman's exit from this business, the right thing to do is to refer this merger to the Competition Commission for further investigation.'
The CC has 24 weeks to investigate the merger which will end on 4 August 2011.
This is the second merger referred by the OFT to the CC so far this year. The first, which relates to Irish Sea ferries, also concerns the closure of part of a business which may have been influenced by the merger; in that case the exit of one of the parties from the Fleetwood-Larne ferry route.
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