Decision Nº M/04/042 from Competition and Consumer Protection Commission, 2004-08-26

• Jurisdiction: Ireland
• Parties: Wolseley Overseas Limited,Brooks Group Limited
• Date: 26 August 2004
• Decision Number: M/04/042
• Status: Preliminary investigation (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Date: 26 August 2004

Determination of the Competition Authority

Determination No. M/04/042 of the Competition Authority, dated 26

August 2004, under Section 21 of the Competition Act, 2002

Notification No. M/04/042 – The proposed acquisition by Wolseley

Overseas Limited of Brooks Group Limited.

Introduction

1. On 30 July 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 Wolseley Overseas Limited

(“Wolseley”) would acquire Brooks Group Limited (“Brooks Group”) (“the

proposed acquisition”).

The Parties

2. Wolseley, the acquirer, is a subsidiary of Wolse ley plc, which is based in

the UK. Wolseley plc supplies goods and services for the central heating,

plumbing, bathroom, drainage, construction and repair & maintenance

sectors, mainly to trade professional customers, through branch networks

in a number of European countries. Wolseley plc operates in the State

through two chains of retail outlets: Heatmerchants / Gas & Oil Parts

(“Heatmerchants”), which supplies heating & plumbing products, gas and

oil replacement parts, and gas appliances, mainly to trade professionals;

and Tubs & Tiles / Allwood Flooring (“Tubs & Tiles”), which supplies tile,

bathroom furniture and accessories, and wood flooring to trade and public

customers. In the State, Heatmerchants has 35 outlets and Tubs & Tiles

has 15 outlets.

3. Brooks Group, the target, is a subsidiary of a Finnish company, UPM

Kymenne Corporation (“UPM”). In the State, Brooks Group supplies timber

products and building materials to builders, joinery and furniture

manufacturers, other builder merchants, and DIY users. Products supplied

by Brooks Group can be broadly categorised as soft and hard woods, sheet

materials, heavy building materials, ironmongery, plumbing and heating

products, and industrial flooring. Brooks Group has 15 outlets in the State,

and 3 outlets in Northern Ireland.

Commercial Rationale

4. […]

Overlap

5. Wolseley and Brooks Group submit that their respective businesses in the

State are in the main complementary and that they only compete

horizontally in two sectors: supply of wood flooring; and supply of heating

and plumbing products. Both Tubs & Tiles and Brooks Group have wood

flooring outlets in Galway, Sligo, Limerick, Tralee, Cork, Waterford and

Dublin. Both Heatmerchants and Brooks Group have heating and plumbing

outlets in Sligo. The Authority’s market enquiries confirm that these

product and geographic sectors are the principal areas where overlap

occurs.

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