Q9.
A9.
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A10.
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A11.
Q12.
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Q13.
A13.
Will the President seek an exit under the EC Merger Regulation in order to consider the bid by HSBC under domestic legislation?
The President has concluded that there are no grounds for seeking an exit from the EC Merger Regulation in order to consider the bid by HSBC under domestic legislation.
Has the Bank of England satisfied itself about prudential concerns in relation to the Hong Kong bid?
We understand that the Bank has satisfied itself about these matters. [The Bank does not normally reveal the outcome of its prudential enquiries. HSBC holdings issued a press statement on 19 May saying it had received clearance from the Bank.]
Surely the President ought to seek to have the bid by Hong Kong and Shanghai Bank considered by the MMC in order to ensure equality of treatment?
The purpose of examination by the MMC is to consider the adverse effects of a merger. Each case is treated on its merits. It would be wrong to refer a proposal that raised no concerns simply because there was a rival bid which did raise concerns. The President has concluded that there are no grounds for seeking an exit from the EC Merger Regulation in order to consider the bid by HSBC under domestic legislation.
Surely it is wrong for the competition machinery to favour a foreign bidder over a UK bidder?
The holding company for HKSB is a UK incorporated company. The Director General and the President consider all relevant aspects of mergers before reaching a view on whether issues are raised meriting detailed investigation. Each case is considered on its merits.
Surely the Lloyds bid should not have been referred so as to ensure a level playing field with the HKSB bid?
The President considers that the proposed acquisition raises competition issues which warrant further investigation by the MMC. Each case is considered on its merits.
JA5.44
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