Decision Nº M/04/036 from Competition and Consumer Protection Commission, 2004-07-16

• Jurisdiction: Ireland
• Decision Number: M/04/036
• Decision Date: 16 July 2004
• Date: 16 July 2004
• Parties: Billington Food,British Sugar
• Court: Competition and Consumer Protection Commission

Determination of the Competition Authority

Determination No. M/04/036 of the Competition Authority, dated

16 July 2004, under Section 21 of the Competition Act, 2002

Notification No. M/04/036 - the proposed acquisition by British

Sugar plc. of Billington Food Group Limited

Introduction

1. On 17 June 2004 the Competition Authority, in accordance with

Section 18(1) of the Competition Act 2002, was notified, on a

mandatory basis, of a proposal whereby British Sugar plc (“British

Sugar”), would acquire the entire issued share capital of Billington

Food Group Limited (“Billingtons”), together with Billingtons’ 30%

shareholding in Sukpak Limitee (“the proposed acquisition”).

2. The proposed acquisition was notified to the United Kingdom Office of

Fair Trading, on 2 June 2004.

The Parties

3. British Sugar, incorporated in England and Wales, produces and

supplies sugar from sugar beet grown in the UK. British Sugar’s

turnover for the year ended 13 September 2003 was about

€1,100million. British Sugar sells a relatively small quantity of refined

sugar in the State ([0-1,000] tonnes, about €[0-1,000,000] worth, in

its most recent financial year). British Sugar only supplies to industrial

users in the State, mainly Irish Sugar.

4. Billingtons, incorporated in England and Wales, imports unrefined cane

sugar into the UK, mainly from Mauritius. Billingtons’ turnover for the

year ended 30 April 2003 was about €44.2 million. Billingtons also

sells a relatively small quantity of unrefined sugar in the State to

industrial users (about €[1-1,000,000] worth in its most recent

financial year).

Analysis

5. British Sugar supplies refined sugars, produced from beet, and

Billingtons supplies unrefined sugars, produced from cane. Neither

party has any physical presence in the State.

6. The parties estimate that the total value of the Irish sugar industry is

about €143million, or 184,000 tonnes, split into 154,000 tonnes to

industrial customers and 30,000 tonnes to retail customers. Irish

Sugar produces approximately 200,000 tonnes annually. The parties

estimate that Irish Sugar exports 48,000 tonnes and that there are

imports into the State from the UK of 12,000 tonnes and from France

of up to 20,000 tonnes. The parties’ combined sales in the State, for

their most recent financial years, are approximately €[0-2,000,000],

which is less than 1% of total sales in the Irish industry. This parties’

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