Ineos/BOC deal blocked

THE acquisition of Runcorn-based Ineos Chlor’s packaged chlorine business by BOC Limited has been blocked by the Competition Commission.

In its final report published today, the Competition Commission concluded that the merger would result in a substantial lessening of competition in the markets for the distribution of packaged chlorine in cylinders and in drums – used by the UK water industry for water disinfection.

The Competition Commission said prohibition of the merger is an effective and proportionate remedy, and a lower-cost remedy than the alternatives considered.

Diana Guy, inquiry group chairman, said: “We found that the proposed merger would reduce the number of competing distributors and would end the rivalry between BOC and Ineos Chlor, which are currently each other’s closest competitors in these markets.

“Our conclusion is that the merger would be anti-competitive and would lead to customers paying higher prices and having less choice than would otherwise be the case.

“We fully considered alternative remedies which were advanced by the parties, including one which held out the possibility of lower prices for customers than if we simply prohibited the merger. However, we were not convinced that these alternatives would be effective nor that prices would indeed be lower. These alternatives also involved risks and costs that would not arise if the merger were prohibited.”