Antitrust Law Daily Wrap Up, ANTITRUST NEWS: CMA publishes issues statement regarding ICE’s acquisition of Trayport, (Jun 1, 2016)

By Michael Menzhuber, J.D., LL.M.

The U.K. Competition and Markets Authority (CMA) has published an issues statement as part of its investigation into the completed acquisition of Trayport by Intercontinental Exchange Inc. (ICE), the agency announced today.

ICE, a global operator of exchanges and clearinghouses, facilitates trading of energy commodities and utilities derivatives. Trayport licenses software products to participants active in the wholesale markets for European utility derivatives and commodities (in particular, natural gas, power (electricity), oil, coal, and emissions). The merger was referred for an in-depth phase 2 investigation on May 3, 2016.

The inquiry group of CMA panel members investigating the merger must decide whether the acquisition may be expected to result in a substantial lessening of competition within any market or markets in the U.K. for goods or services, the CMA announced. The inquiry group must publish its final report by October 18, 2016.

The issues statement identifies clearly the key questions which the inquiry is examining, but does not imply that the inquiry group has yet identified any competition concerns. Anyone wishing to respond to the issues statement must do so no later than 5:00 pm on June 14, 2016, either by email at ice.trayport@ccma.gsi.gov.uk or by writing to: Project Manager, ICE/Trayport merger inquiry, Competition and Markets Authority, Victoria House, Southampton Row, London.

Orchard House Foods Limited. The CMA will give detailed consideration to an undertaking offered by Hain Frozen Foods UK Limited (Hain) in connection with its acquisition of Orchard House Foods (Orchard) in December of 2015.

Hain and Orchard are the only two suppliers of own-label freshly squeezed fruit juice to supermarket retailers and two of the main suppliers of own-label freshly squeezed fruit juice to food service retailers. They face limited competition from other suppliers in the area, according to the CMA.

On May 17, 2016, the CMA announced that the merger would be referred for an in-depth phase 2 investigation unless acceptable undertakings were offered. Hain responded by offering to sell its own-label freshly squeezed fruit juice business to a suitable purchaser. The CMA considers that this undertaking, or a modified version of it, might be acceptable.

The CMA will consider whether to accept the proposed undertaking and will open a public consultation on whether they, and any proposed purchaser for the divestment business, are sufficient to address the competition concerns. The merger will be referred for a phase 2 investigation if the CMA does not accept the undertaking.

News: Antitrust