Sir Jim Ratcliffe, the chair of INEOS, the private chemicals giant, has accused Britain’s competition watchdog of being ‘increasingly hostile to business’, following its rejection of the firm’s $1bn acquisition of Sika AG, a concrete additives business.
Ratcliffe claims the Competition and Markets Authority (CMA) prevented the takeover without having any competing businesses and refused to meet face-to-face in the process. The rejection has seen Sika AG, which employed 1,600 people across the world producing concrete admixtures needed for the construction industry, purchased by a US firm instead.
Speaking out about the decision, Ratcliffe stated, “The latest snub led to Sir Jim Ratcliffe accusing the CMA of ‘building a reputation as an overly aggressive regulator with little regard for the impact of its decisions on UK business.’” He added, “He claimed ‘the CMA and UK government are becoming increasingly hostile to business.’”
Read more: UK CMA Accepts CVS’s Offer To Sell The Vet, Ending Probe
Responding to Ratcliffe’s remarks, a CMA spokesperson offered an explanation for the rejection: “Effective merger control is pro-business and pro-growth… When we conclude a deal can go ahead subject to part of a merged business being sold, we assess, among other criteria, whether potential buyers could lead to further competition problems. It is critical when approving a potential buyer that we don’t allow new competition problems to develop.”
The CMA also pointed to estimates which suggest that during the past 3 years, the CMA merger regime has saved consumers more than £2 billion.
It appears, then, that while Ratcliffe is criticizing the CMA’s decisions, they are only attempting to safeguard both businesses and consumers from the impact of larger mergers that may prevent competition.
Featured News
Major App Developers Shun Apple’s New Payment Options, Citing Unfavorable Fees
May 12, 2024 by
CPI
Ex-Contractor Pleads Guilty to Rigging Bids in Wildfire Fuel Services for US Forest Service
May 12, 2024 by
CPI
UK Newspapers Warn Apple Against “Web Eraser” Feature’s Threat to Journalism
May 12, 2024 by
CPI
Microsoft Ordered to Pay $242 Million in Patent Infringement Case
May 12, 2024 by
CPI
UK Antitrust Authority Launches Formal Probe into Olink’s Sale to Thermo Fisher
May 12, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI