Decision Nº M/03/037 from Competition and Consumer Protection Commission, 2003-01-05

• Jurisdiction: Ireland
• Parties: IFG Group,General Electric
• Submitted Date: 05 December 2003
• Date: 05 January 2003
• Decision Number: M/03/037
• Status: Cleared (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Date: 05 January 2003

Determination of the Competition Authority

Public Version

Determination No. M/03/037 of the Competition Authority, dated 5 January

2004, under Section 21 of the Competition Act, 2002

Notification No. M/03/037 – Acquisition by GE Capital Woodchester Limited of

a controlling interest in IFG Investment and Mortgage Services Limited and IFG

Mortgage and Assurance Services Limited

Introduction

1. On 5 December 2003 the Competition Authority, in accordance with Section 18

(1) of the Competition Act, 2002 (the Act) was notified, on a mandatory basis, of

a proposal whereby GE Capital Woodchester Limited (GECW) would acquire

50% of the issued share capital of each of IFG Investment and Mortgage Services

Limited and IFG Mortgage and Assurance Services Limited (the Companies)

from IFG Group Plc (IFG).

The Parties

2. GE is a USA registered independent public company. It is a diversified industrial

corporation active in fields such as aircraft engines, appliances, power systems,

lighting, industrial systems, medical systems, plastics, speciality materials,

broadcasting, financial services and transport systems. GECW is a member of

the GE Group. It provides personal finance, specialised financing products and

other services such as equipment and car leasing, hire purchase and loans to

businesses and individuals across Ireland.

3. IFG provides financial services, financial advisory and intermediary services in

the UK and Ireland. The Companies provide independent mortgage advisory

services to mortgage lenders by arranging the provision of mortgage loans as a

mortgage intermediary and through a network of agents all of which are

mortgage intermediaries.

Analysis

4. The purpose of the acquisition is to form a joint venture between GE and IFG to

develop a new residential mortgage product in the State – specialist residential

mortgages designed for customers who demonstrate debt capacity despite not

fitting the existing fixed underwriting criteria of other financial institutions.

5. There is no horizontal overlap in the activities of the parties. GE has a small

presence in the State in relation to its specialist residential mortgage product. This

residential mortgage product is offered via the Companies rather than directly by

GE under a pilot programme. GE’s share of residential mortgages in the State is

less than 1%. The Companies do not act as mortgage lenders.

6. There is a vertical overlap between the activities of the parties. The Companies

may provide mortgage intermediary services to a number of mortgage lenders,

including GE. However, it is unlikely that the acquisition will result in

foreclosure of other mortgage lenders from using the Companies services. GE’s

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