Reference of Securicor PLC / Royal Mail Group PLC to the Competition Commission

Terms of Reference

Proposed acquisition by Securicor Plc of the cash handling and distribution business of Royal Mail Group Plc

Whereas it appears to the Secretary of State that it is or may be the fact that arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a merger situation qualifying for investigation, as defined in section 64(8) of the Fair Trading Act 1973 ("the Act"), in that:

(a) enterprises carried on by or under the control of Securicor Plc (a body corporate incorporated in the United Kingdom) will cease to be distinct from enterprises carried on by or under the control of Royal Mail Group Plc (formerly Consignia Plc); and

(b) as a result, the condition specified in section 64(3) of the Act will prevail, or will do so to a greater extent, with respect to the supply of cash in transit services and to the supply of cash management services in the United Kingdom.

Now, therefore, the Secretary of State, in exercise of her powers under sections 64, 69 (2) and 75 of the Act, hereby refers to the Competition Commission ("the Commission"), for investigation and report within a period ending on 21 February 2003, the following questions:

(i) whether arrangements are in progress or in contemplation as described in
paragraph (a) above which, if carried into effect, will result in the creation of a merger situation qualifying for investigation;

(ii) if events so require, whether the actual results of those arrangements are the creation of such a situation; and

(iii) if so, in either case, whether the creation of that situation may be expected to operate or (if events so require) operates against the public interest.

In relation to the questions in paragraphs (i) and (ii) above, the Commission shall exclude from consideration one of paragraphs (a) and (b) of section 64(1) of the Act if they find the other satisfied.

8 November 2002