Decision Nº M/04/019 from Competition and Consumer Protection Commission, 2004-04-22

• Jurisdiction: Ireland
• Parties: Sarcon Ltd,Barlo Group Ltd
• Date: 22 April 2004
• Decision Date: 22 April 2004
• Decision Number: M/04/019
• Court: Competition and Consumer Protection Commission

Determination of theCompetition Authority

Determination No. M/04/019 of the Competition Authority, dated 22nd April

2004, under Section 21 of the Competition Act 2002

Notification No. M/04/019 - The proposed acquisition by Sarcon (no.159) Limited

of Barlo Group plc

Introduction

1. On 2nd April 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 Sarcon (no.159) Limited (“Sarcon”), a wholly-owned subsidiary of

Quinn Group Limited (“Quinn Group”) would acquire Barlo Group plc (“Barlo

Group”) by way of a public bid - “the proposed acquisition”.

The Parties

2. Quinn Group, a Northern Ireland registered company, owns and controls 31

subsidiary companies and operates mainly in Ireland and the UK. Quinn Group’s

main areas of business are hospitality (public houses and hotels); non-life

insurance and finance services; and manufacture and supply of construction

materials (cement, tarmac, aerated concrete blocks, concrete roof tiles, pre-

stressed concrete, pre-stressed flooring, and general quarry and concrete

products), polystyrene insulation and container glass.

3. Barlo Group is an Irish registered company whose separate subsidiary companies

manufacture transparent and coloured plastic sheeting, plastic packaging for dairy

products (e.g. butter spreads) and domestic and industrial heating radiators, for

supply in Ireland, the UK and continental Europe.

Analysis

4. Quinn Group does not intend to integrate any of Barlo Group’s subsidiaries into

its businesses – post-acquisition, Barlo Group’s subsidiaries would continue to

operate as separate businesses. For consideration of any possible product overlaps

that might result from the proposed acquisition, only certain products of the

notifying parties need be considered, as set out below:

 Polystyrene Insulation - Quinn LitePac Limited (“Quinn Litepac”), a

subsidiary of Quinn Group, manufactures plain board polystyrene thermal

insulation. Plain board insulation can be used as a packaging material but

its main application is as insulation - sales as a packaging material are

minimal and ancillary. There is no significant substitutability between

polystyrene insulation and the plastic sheets and polypropylene tubs

(packaging materials) manufactured by Barlo Group - they differ in

weight, strength, durability and purpose and have distinct end-

applications. The different end users/customers of the respective products

indicates that they are not substitutable. Also, Quinn LitePac states that it

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