| Competition Assessments for Mergers and Acquisitions |
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Our Experience The Wendover Group have a wealth of experience in the application of geographical competition rules for outlet and branch-based businesses, and offer a service for both companies and competition authorities undertaking mergers and acquisitions activities to assess the potential impacts on local competition. Members of The Wendover Group have worked on a significant number of major mergers and acquisitions, from the landmark Safeway/Morrisons merger inquiry in 2003 onwards. We have acted both on the side of the acquiring and acquired company, as well as being commissioned directly by the competition authorities.
Assessment and Analysis Service Our service, which is configured to your precise requirements, covers branch and competitor mapping, isochrone/drive time generation, trading area analysis and the application of rule-based logic to determine competition levels pre- and post-merger. This can be delivered as an evidence package acceptable for submission to the OFT or Competition Commission. We can also assist in the development of optimised divestment strategies to remedy potential competition problems. Geographical analysis enables measurement of the degree of overlap between the trade of one business and another, both nationally and in terms of individual branch trading areas. It provides a means to assess compliance with competition rules, as well as to understand potential divestments - in itself essential to evaluate the benefits of the transaction and take an informed view on the financial value of the combined business.
Competition Compliance It is well known that competition in the UK is regulated to ensure that companies do not engage in non-competitive practices, including the abuse of a dominant market position. The potential for such abuse may be considered where insufficient choice exists in markets for particular goods and services either at a national or local level; a situation which can occur as a result of a merger between companies in the same market as this instantly increases market share and may reduce the number of competitors in a local market. An acceptable level of competition is usually determined by the application of a number of rules governing customer choice or market share within a particular defined area. We understand that such rules can be difficult for companies to apply, and frequently they require the application of specialist geographical and drive time software. We also understand the speed imperative to be able to produce results fast.
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