DSR 11C
LORD PRIVY SEAL'S VISIT TO HONG KONG: 8 11 JANUARY 1982
BRIEF NO
:
Essential Facts:
HONGKONG AND SHANGHAI BANKING CORPORATION'S BID FOR ROYAL BANK OF SCOTLAND
1. The Hongkong and Shanghai Banking Corporation and the
Standard Chartered Bank have made bids for the Royal Bank
of Scotland. Both of these were referred on 1 May 1981
by the Secretary of State for Trade to the Monopolies and
Mergers Commission, which will report to him before
31 January, 1982.
2. The report will be confidential until publication, which
:
will be arranged as quickly as is practicable and no later
that the third week in February. The reference implied
no prejudice against either bid or any presumption that
either merger would operate against the public interest.
The bids do however raise important issues of public interest
which need examination by an independent quasi-judicial
body. It is now for the Monopolies and Mergers Commission
to consider all aspects of the public interest, and it would
not be appropriate to offer any comment until the Monopolies
and Mergers Commission's report has been published.
There was some press speculation in November about the
introduction of legislation to control bank mergers and
3.
takeovers to replace the present non-statutory arrangements
under which banks are expected to secure the Bank of England's
/approval