Decision Nº M/04/047 from Competition and Consumer Protection Commission, 2004-09-10

• Jurisdiction: Ireland
• Date: 10 September 2004
• Submitted Date: 11 August 2004
• Decision Date: 10 September 2004
• Parties: M&S Financial Services,HSBC
• Decision Number: M/04/047
• Court: Competition and Consumer Protection Commission

Determination of the Competition Authority

Determination No. M/04/047 of the Competition Authority, dated September 10

2004, under Section 21 of the Competition Act, 2002

Notification No. M/04/047 – Proposed acquisition by HSBC plc of Marks and

Spencer Retail Financial Services Holdings Limited Introduction

1. On 11 August, 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 HSBC plc (“HSBC”) would acquire 100% of Marks and

Spencer Retail Financial Services Holdings Limited (“M&S FS”).

The Parties

2. HSBC provides a wide range of financial and banking services and products

and has operations worldwide.

3. Marks and Spencer (“M&S”) is a UK-based retailer of clothing, food and home

products. It provides financial services through its in-house financial services

business, M&S FS. The only activity carried out in the State by the latter is to

offer a “store card” to M&S customers, which permits them to purchase goods in

M&S stores.

Analysis

4. The store cards offered by M&S FS have similar features to credit cards

insomuch as they allow for the purchase of goods before payment is made.

However, a store card can only be used with one retailer. For the purposes of this

determination, it is not necessary to form a view as to whether store cards and

credit cards are in the same market, since HSBC does not offer either credit or

store cards within the State. Therefore there is no overlap and the transaction

does not give rise to competition concerns.

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