Briefing - EC & Competition Group (Competition Authority) - April 2009
06.04.2009
On 19 March 2009, the Irish High Court annulled the decision of the Irish Competition Authority (“the Authority”) to block Kerry Group’s proposed acquisition of one its major competitors, Breeo Foods1. The appeal was the first time that a party had appealed a negative Authority merger decision taken under the Irish Competition Act 2002). Crucial to the Court’s ruling was its finding that the Authority had failed to assess correctly the sufficiency of countervailing buyer power (“CVBP”) to deter an attempted price increase post merger by the merged entity.
This briefing note contrasts the Authority’s approach to CVBP in its decision on the proposed Kerry/Breeo merger and the Court’s approach to the same issue. This note also considers the implication of the High Court’s ruling for future mergers, particularly those in the grocery sector.
