The issues statement is part of the CCs process of gathering information, views and evidence and identifies clearly for all interested parties the specific questions and areas the inquiry will be examining. These will form the basis of hearings with LSE, DBAG and Euronext.
The full issues statement is attached to this release and raises issues for the proposed mergers concerning:
(a) market definition;
(b) the counterfactual-what would be likely to happen in the absence of either of the proposed mergers;
(c) assessment of the competitive effects of either of the proposed mergers; and
(d) customer benefits that might arise as a result of either of the proposed mergers.
The proposed mergers were referred by the Office of Fair Trading (OFT) on 29 March 2005 and the CC is seeking to establish whether they may be expected to result in a substantial lessening of competition within the UK market or markets for on-exchange trading services for equities, clearing services for equities trades, or any other market or markets such as listing, settlement or information services.
If the CC finds that either of the proposed mergers may be expected to result in a substantial lessening of competition, it will consider whether, and if so what, remedies might be appropriate and will issue a remedies statement at a later date. The CC is required to publish its final report by 12 September 2005.
The CC has yet to reach any conclusions, and will not do so until it has discussed these issues with LSE, DBAG, Euronext and others. The purpose of making the statement of issues public is to inform all interested parties and give them an opportunity to make submissions or offer evidence to the CC. Information about the reference is available on the CC web site at:
www.competition-commission.org.uk/inquiries/current/sdel/index.htm
Anyone wishing to comment on any of the issues set out below, or on any other competition issue arising out of either proposed merger, is requested to do so by 20 May 2005 in writing to:
Alan Shearman
Secretary to the LSE mergers inquiry
Competition Commission
Victoria House
Southampton Row
LONDON
WC1B 4AD
Or email: alan.shearman@competition-commission.gsi.gov.uk .
The CC will continue to gather evidence in this inquiry and currently intends to publish its provisional findings in early July as set out in the administrative timetable on the CC web site.
