CONFIDENTIAL
MARKET SENSITIVE
Mr R F Cornish LVO
British Trade Commissioner British Trade Commission HONG KONG
Direct line 071-215 6712
Our ref
HKA 120/1
6 OCT 1993
PA BTC file.
уз
Department of Trade and Industry
Ashdown House
123 Victoria Street London SW1E 6RB
Enquiries
071-215 5000
Telex 8813148 DIHQ G
Fax 071-828 3258
Your ref
Date 4 October 1993
Den Francis
LI KA SHING
You sent Catherine Bell a copy of your letter of 23 September on this subject to Martyn Baker. I have recently taken over from Catherine as Head of Competition Policy Division in DTI.
I was interested to see your comments on Mr Li's investment plans for the UK, and in particular his proposal to purchase Thamesport. You asked whether this might give rise to competition concerns. The bald answer is that any "qualifying" merger (ie a merger above a certain size - which would certainly be the case with any acquisition of Thamesport) would first have to be considered by the Director General of Fair Trading (DGFT). He advises the Secretary of State here as to whether a merger should be approved, or referred to the Monopolies and Mergers Commission. I am sure you will understand that the Secretary of State must act fairly towards all who may have an interest in a merger by approaching his decision in an open-minded manner; for this reason, it is unfortunately not possible to give a steer at this stage.
It is, however, possible for potential bidders to approach the DGFT for confidential guidance on whether a merger is likely to be referred to the MMC. Provided the issues are reasonably clear and that he is able to get sufficient information from the main parties, the DGFT will not necessarily have to consult third parties. I should stress, however, that because circumstances may change or more information may come to light once the merger is made public, confidential guidance only provides guidance as to the likely decision on the basis of the information available and is not binding on the Secretary of State's formal decision.
dti
the department for Enterprise
Recycled Paper