KODAK PROCESSING COMPANIES LTD/COLOURCARE LTD MERGER INQUIRY

REMEDIES STATEMENT

The Competition Commission (the Commission) has sent remedies letters, on a purely hypothetical basis, to the main parties, Kodak Processing Companies Ltd (KPCL) and ColourCare Ltd, in its inquiry into the acquisition of certain assets of ColourCare by KPCL.

The Commission has as yet reached no conclusions on any matter, in particular as to whether the acquisition of ColourCare by KPCL 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. In particular, comments are invited on the likely effectiveness, costs and practicability of the remedies that have been set out. Any such comments should reach the Commission by Monday 29 October.

The Commission invites views on two possible remedies:

prohibition of the proposed acquisition, or
the proposed acquisition being conditional on the divestment of one or more of KPCL’s and/or ColourCare’s laboratories and associated businesses relating to specific services or to parts of the UK where adverse effects may be identified.

Notes to Editors

The reference was made by the Secretary of State for Trade and Industry, under sections 64, 69(2) and 75 of the Fair Trading Act 1973, on 16 August 2001 (see DTI news release P/2001/442). The Competition Commission will submit its report to the Secretary of State by 26 November 2001. It will subsequently be published.
The Statement of Issues was set out in Competition Commission News Release 32/01, dated 19 September 2001.
This inquiry is being undertaken by a group of five Commission members. The Chairman is Professor Paul Geroski, a Deputy Chairman of the Commission, who is also Professor of Economics at the London Business School. The other members are Mrs Sarah Brown, a former DTI Civil Servant, who is a member of the Friendly Societies Commission and a director of the Financial Services Compensation Scheme; Miss Judith Hanratty, a barrister who is Company Secretary of BP AMOCO plc and a member of the Takeover Panel; Mr Tim Richmond, a chartered accountant, and Mr Jeremy Seddon, a former merchant banker.
Further information can be obtained from the Commission’s website at www.competition-commission.org.uk
Enquiries should be directed to: Francis Royle, Press Officer (020 7271 0242).