Competition watchdog ‘stepped up enforcement’ in 2017

The Competition and Consumer Protection Commission (CCPC) stepped up its enforcement last year, according to a new report by McCann FitzGerald.

The law firm has published an end-of-year review of Irish Merger Control in 2017.

The number of merger and acquisition (M&A) transactions notified to the CCPC increased to 72 in 2017, up by 7.5 per cent on 2016, and the number of deals receiving extended CCPC review also rose.

Philip Andrews, head of the competition, regulated markets, EU and trade law group at McCann FitzGerald, said: “This was a year in which the CCPC stepped up its enforcement activity, with 9 of 72 deals so far receiving extended CCPC review, triple the 2016 number (when 3 out of 67 filings did). While no deal was blocked outright, the CCPC required significant fixes in some cases.

“The CCPC also launched more ‘own-initiative’ investigations into deals not notified to it. For example, Kantar Media/Newsaccess, a merger of close rivals, did not meet Irish reporting thresholds but, having learned of it via media reports, the CCPC required the parties to notify the deal. It was cleared after an extensive divestment commitment and a four-month review.

“Foreign investor acquisitions drove a large number of filings last year with investments by Bain Capital, Kennedy Wilson, Hammerson plc, Deka Group, Oaktree, Macquarie, Capvest, Exponent and Carlyle in Irish real estate and businesses accounting for 15 per cent of 2017 filings. Acquisition of independent motor fuel retailers by the major franchises (Topaz, Applegreen and Maxol) accounted for another 15 per cent.

“Proposals to raise mandatory reporting thresholds may, by the CCPC’s own estimate, reduce the number of filings by up to 40 per cent but it is not yet clear when these new thresholds, which require legislative change, may come into effect.”