Decision Nº M/04/026 from Competition and Consumer Protection Commission, 2004-05-20

• Jurisdiction: Ireland
• Court: Competition and Consumer Protection Commission (Ireland)
• Parties: 3i Group plc
• Date: 20 May 2004
• Submitted Date: 27 April 2004
• Status: Preliminary investigation (Phase 1)
• Decision Number: M/04/026
• Decision Date: 20 May 2004

Determination of the Competition Authority

Determination No. M/04/026 of the Competition Authority, dated

20 May 2004, under Section 21 of the Competition Act, 2002

Notification No. M/04/026 – the proposal by 3i Group plc to

acquire Bowater Building Products Limited

Introduction

1. On 27 April 2004 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 3i Group plc (“3i”) would

acquire Bowater Building Products Limited (“BBPL”) (“the proposed

acquisition”).

The Parties

2. 3i is a venture capital and private equity company, registered in

England and Wales, which has a portfolio of more than 2,000

companies worldwide, operating in a wide range of business sectors

and industries. 3i does not carry on business in Ireland other than

through its portfolio companies.

3. BBPL is the ultimate holding company for Bowater Windows Limited

(“BWL”), which is the main trading company of the BBPL group of

companies. The BBPL group manufactures, supplies and installs

double-glazed windows, door units, conservatories and related

products made from polyvinyl chloride unplasticised (“PVC-u”)

materials, and also manufactures and supplies PVC-u profiles for

windows, doors, conservatories and related products.

4. The BBPL group’s turnover in the State is derived solely from BWL’s

sale of PVC-u profiles. BWL has no physical presence in Ireland – it

sells its PVC-u profiles products to National Profiles Limited, Mallow,

County Cork, which acts as a distribution agent for BWL in Ireland.

Analysis

5. Of its business investment portfolio, 3i has an investment in one other

UK-based company, Indigo Products Ltd, which manufactures and

supplies products that appear substitutable for those of BBPL.

However, 3i confirms that Indigo Products Ltd does not make sales

into Ireland (3i also submits that it is incapable of exercising decisive

influence over Indigo Products Ltd, within the meaning of Section

16(2) of the Competition Act 2002, due to the size of its investment

shareholding). 3i further confirms that it does not control any other

businesses that manufacture or supply u-PVC products, similar to

those manufactured by BBPL.

6. There is no horizontal or vertical overlap in Ireland between the goods

and services manufactured and supplied by 3i, or any business that

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