Glenigan and ABI merger deemed anti-competitive

The Competition Commission (CC) has provisionally concluded that the acquisition of ABI Building Data by Emap, the owner of Glenigan, is anti-competitive.

In a statement, Diana Guy, chairman of the CC’s inquiry group said: “The merger is likely to result in a substantial lessening of competition in the market for the supply of construction project information and contact data.

“By effectively removing the main competitor in the market, the merged company would control about 70% of the market and be in a position to raise prices. Both Glenigan and ABI have been able to raise prices profitably in the past few years even while in active competition. It is likely that the merged company would have even more scope to do so.

Guy added: “The merger would remove choice for customers who were able to benefit from the competition between the two companies when negotiating prices. The merged company would also have less incentive to improve its product and to innovate, so it is likely that the merger would be detrimental to customers.”

The CC is now consulting on suitable remedies, including that Emap should license project information and contact data to a competitor or that it should dispose of ABI.

The summary of the provisional findings report is available on the CC’s web site at www.competition-commission.org.uk <http://www.competition-commission.org.uk>.

A spokeswoman for Emap told CJ that she was not aware if it could appeal against the provisional findings. “We don’t have anything to add to the CC’s statement, other than we will be discussing possible remedies with the CC,” she said.

Anyone wishing to comment on the proposed remedies or on the provisional findings is invited to provide the CC with their response in writing. Comments on the remedies must be received by the CC no later than 25 November.

Before referring the merger to the CC, the Office of Fair Trading accepted undertakings from Emap that it would maintain ABI as a separate business, with additional obligations to ensure that ABI could maintain its competitive potential.