Sugar business fined for failure to comply with watchdog’s merger procedures
The Competition and Markets Authority (CMA) has fined Tereos SCA and Tereos UK and Ireland (together Tereos) £25,000 for failing to provide relevant information in relation to the T&L Sugars/Tereos merger inquiry.
As part of the CMA’s phase two investigation, a notice was sent to Normanton-based Tereos under section 109 of Enterprise Act 2002 (the Act) requiring the production of certain minutes and internal documents in relation to its board and corporate governance.
Tereos responded to the notice. However, following further enquires by the CMA it was found the business failed, “without reasonable excuse”, to provide a full response.
In particular, the CMA Inquiry Group found Tereos’s interpretation of the scope of the notice was “unjustifiably narrow and untenable” when viewed in the context of the object of the merger inquiry and that the failure was capable of having an adverse impact on the CMA’s investigation.
Richard Feasey, chair of the independent inquiry group which led the investigation, said: “It’s important that firms respect the UK merger review process – which includes providing all the information we need to promptly progress our investigation.
“Firms and their advisers must not apply their own narrow, artificial interpretation of our formal information gathering requirements – as Tereos has done so here.
“Had they responded properly then Tereos could have avoided this fine altogether.”
Currently, where there is a failure to comply, without reasonable excuse, with a requirement of a notice under section 109 of the Act, the maximum fixed penalty the CMA is able to impose is £30,000.
