OFT considers new evidence on Growhow

KEMIRA Growhow, which owns a fertiliser business in Cheshire, may escape Competition Commission demands after submitting new evidence to the Office of Fair Trading (OFT).

The group, which employs around 450 staff at its Growhow UK site at Ince, agreed to sell part of the business after the commission said its merger with US rival Terra could limit competition.

The OFT is now looking at submissions from the company and is inviting comment from interested parties such as competitors and suppliers.

Last year Kemira Growhow Oyj, the listed Finnish group, proposed the merger of its and Terra’s UK operations to create a joint venture with sales of £70m. Both businesses produce and sell ammonium nitrate, used in fertiliser and explosives, as well as complex fertilisers, nitric acid, ammonia and raw CO2.

The deal was referred to the Competition Commission which said Kemira should sell some assets to allay competition fears.

Now Kemira has told the OFT that the closure and sale of two Terra plants and the acquisition of Kemira by the Norwegian group Yara International has removed the competition threat and made the disposals unnecessary.

The OFT will consider the evidence as well as extra submissions. It said it had a duty to consider whether, by reason of any changes in circumstances, the undertakings remain appropriate.

“In reviewing undertakings the OFT acts as an advisory body to the Competition Commission and it can recommend that the undertakings should be kept in place, varied, revoked or replaced.”