SCR SIBELCO SA/FIFE SILICA SANDS LTD AND FIFE RESOURCES LTD MERGER INQUIRY

REMEDIES STATEMENT

The Competition Commission (the Commission) has sent a remedies letter, on a purely hypothetical basis, to the main party, SCR Sibelco SA (Sibelco), in its inquiry into the acquisition of Fife Silica Sands Ltd and Fife Resources Ltd (Fife) by Sibelco.

The Commission has as yet reached no conclusions on any matter, in particular as to whether the acquisition of Fife by Sibelco operates or might be expected to operate against the public interest. However, if the Commission reached any adverse findings on the acquisition, it would wish to make appropriate recommendations for remedies to the Secretary of State. This statement of hypothetical remedies is being made public to inform all interested persons, should they wish to comment or to raise further points with the Commission within the next week.

Three possible types of recommendation are being raised with the main party:

Structural remedies

whether the whole or part of the Fife companies should be divested.
whether any other business of Sibelco in the UK should be divested.

b. Behavioural remedies

Whether, in order to address any possible adverse effects on competition in the sale of glass sand, measures should be put in place to:

regulate the prices charged for glass sand by Sibelco.
prevent discrimination by Sibelco, in respect either of price or terms of supply, for example by imposing a limit on the spread between the highest and lowest price charged for similar grades and quantities of glass sand.
increase price transparency in the sale of glass sand, for example, by requiring Sibelco to publish and adhere to lists of ex-works prices.
ensure that the haulage element of delivered prices for glass sand accurately reflects the transport costs involved.

c. Monitoring

Whether Sibelco should provide the Director General of Fair Trading with such specified information about the prices it charges for, and the terms and conditions under which it sells, glass sand as he shall from time to time request.

This press notice is also available on the Competition Commission web site: www.competition-commission.org.uk/07-01.htm or from the Reference Secretary (Sibelco Inquiry), Room 637, New Court, Carey Street, London WC2A 2JT.

Notes to editors

The SCR-Sibelco/Fife reference was made by the Secretary of State for Trade and Industry, under section 64(8) of the Fair Trading Act 1973, on 9 January 2001 (see DTI press release P/2001/18). No conclusions will be reached about whether any matters may be expected to operate against the public interest until the Commission submits its report to the Secretary of State on or before 16 April 2001.
The Statement of Issues were set out in Competition Commission News Release 04/01, dated 12 February 2001.
The inquiry is being chaired by Dr Gill Owen, one of the Commission’s members. The other members of the Group conducting the inquiry are Christopher Darke, Richard Rawlinson and Martyn Webster.
Further information can be obtained from the Competition Commission website at www.competition-commission.org.uk/ref.htm.
Press enquiries should be directed to: Francis Royle, Press Officer Tel: 020 7271 0242.