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OFT thinks acquisition by Ardagh of Redfearn Glass Limited

01 Aug '05
2 min read

The Office of Fair Trading (OFT) referred the completed acquisition by Ardagh International Holdings Ltd of Redfearn Glass Limited (previously Rexam Glass Barnsley Limited) to the Competition Commission.

The OFT has decided that the test for reference is met in relation to the supply of glass containers (excluding those used for pharmaceutical and cosmetic purposes) in the UK.

Vincent Smith, OFT Competition Enforcement Director, said:

The merged entity controls 50 per cent of most types of glass containers in the United Kingdom. The key question here is whether alternative suppliers, both in the UK and abroad, are a competitive constraint post-merger. The evidence is mixed, and, together with the substantial customer concerns received by the OFT, these factors lead the OFT to refer the merger to the Competition Commission for further examination.

The CC is expected to report in four months.

Global glass container pivotal player Ardagh Glass was formed as a result of the demerger of Ardagh plc's glass interests. The Ardagh group has a long history in the glass industry with unparalleled experience and expertise. The combination of the four Rockware plants, the two Heye-Glas plants and the Abruzzo Vetro plant places the group as a market leader within Europe. This industry experience is complimented by the established technical expertise of Heye-International.

London based OFT regulates consumer protection and commercial activity.

Office of Fair Trading

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