Decision Nº M/07/007 from Competition and Consumer Protection Commission, 2007-02-21

• Jurisdiction: Ireland
• Parties: Conrad International Corporation,Bernard McNamara,Earslfort Centre Hotel Proprietors Limited
• Date: 21 February 2007
• Decision Number: M/07/007
• Status: Cleared (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Date: 21 February 2007

Merger Notification M/0/007 – Bernard McNamara, Conrad International, ECHPL

1

DETERMINATION OF MERGER NOTIFICATION M/07/007 –

BERNARD MCNAMARA/CONRAD INTERNATIONAL/ECHPL

Section 21 of the Competition Act 2002

Proposed acq uisition by Bernard McNamara and Conrad International

Corporation of Joint Control of Earlsfort Ce ntre Hotel Proprietors

Dated 21/02/07

Introduction

1. On 26 January 2007, the Comp etition Authority (“th e Authority”), in

accordance with section 1 8(1)(a) of the Competition Act, 2002 (“the

Act”) was notified, on a mandatory basis, of a proposed acquisition by

Bernard McNamara and Conrad International Corporation (“Conrad

International”) of joint control of Earlsfort Centre Hotel Proprietors

Limited (ECHPL”).

2. Under a share purchase a greement Bernard McNamara has agreed to

purchase betwee n 45% and [.]% of the issued share capital of

ECHPL.

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Conrad will continue to hold 25% of the issued share capital

of ECHPL. The remaining shares wil l be dispersed among a number

minority of shareholders.

The Undertakings Involved

3. Bernard McNamara, th e acquirer, is the Executive Chairman of Michael

McNamara & Company, a construction company. Bernard McNamara

controls undertakings that generate turnover in excess of €40 million

in the most recent financial year. Bernard McNamara has interests in a

number of hotels in the State, including [.] in Dublin.

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4. Conrad Internati onal is a subsidiary of Hilton Hotels, a global

hospitality company wi th nea rly 2,800 h otels and 485,000 rooms in

more than 80 countries. Apart from the Conrad Hotel, Hilton Hotels

indirectly operates 6 Hotels in the State, i ncluding 3 in Dub lin all of

which trade under the Hilton name.

5. Conrad Internationa l currently holds and will r etain 25% of the issued

share capital of ECHPL. Conrad International has been ceded the

management of the Conrad Hotel, Earlsfort Terrace, Dublin 2 (“the

Dublin Conrad”) by ECHPL.

6. ECHPL, the target, is involved in the hospitality sector through

ownership of a hotel, restaurant and bar bus iness at the Dublin

Conrad. It has ceded the management of this hotel to Conrad

International, a subsidiary of Hilton Hote ls.

7. ECHPL is current ly controlled by a n umber of shareholders that

include; Conrad International; [.].

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[.].

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Bernard McNamara has the following hotel investments; [.].