Lawyers aid go-ahead for firms’ merger

Aug 29 2007 by Tony McDonough, Liverpool Daily Post

CORPORATE lawyers in Liverpool have helped get clearance from the Competition Commission for the merger of the UK’s two leading steel drum producers.

US-based Greif, which has its main UK headquarters in Ellesmere Port, originally had its bid to take over the Manchester manufacturing facilities of Blagden Packaging Group, provisionally blocked by the CC.

But following the intervention by lawyers from Liverpool law firm DWF, the deal has now been given the go-ahead. It is only the second time that a transaction which was provisionally blocked has been given the go-ahead by the Commission.

The CC has now concluded that the merger would not lead to a substantial lessening of competition in the market for large steel drums in the UK.

DWF partner Laurence Pritchard said: “The acquisition took place in November 2006 and in the UK was referred by the Office of Fair Trading to the Competition Commission in February this year.

“In June the Commission announced that it had provisionally decided that the transaction would lead to a substantial lessening of competition.

“However, we were able to put forward evidence which showed that the new enlarged company would face sufficient competition from overseas and from other types of packaging.”

tonymcdonough@dailypost.co.uk