RNS Number:5214U
Dept Trade & Industry
22 January 2004

PATRICIA HEWITT ANNOUNCES CLEARANCE OF MARCH/GUS HOME SHOPPING AND HOME DELIVERY
MERGER

Trade and Industry Secretary Patricia Hewitt has today announced clearance of
the completed acquisition by March UK Ltd (March) of the home shopping and home
delivery businesses of GUS plc (GUS). The Competition Commission's (CC's) report
into the merger is published today.

March, a company under the control of Sir David and Sir Frederick Barclay who
also control Littlewoods Ltd (Littlewoods),  acquired several businesses from
GUS, including the home shopping business Shop Direct, and the home delivery
business Reality.

The CC considered the economic market for home shopping to be a wide one in
which the relevant companies were constrained by competition from other forms of
home shopping and high street retailing.

The CC concluded that the merger might be expected to benefit customers and not
lead to a significant lessening of competition when compared with the expected
alternative scenario, which would be the former GUS businesses being wound down
or otherwise ceasing to be effective competitors.

The economic market for home delivery was considered to be all UK-wide
business-to-consumer services delivering parcels in the weight range between
350g and 32 kg, although it was accepted that the degree of competition might
vary at different levels within that range.

The CC concluded that the merger could not be expected to lead to a significant
lessening of competition, by comparison with the expected alternative of a
declining and disappearing Reality (March's home delivery business).

The CC also concluded that the merger as a whole did not, and might not be
expected to, operate against the public interest.



Notes for editors

 1. The merger was completed on 27 May 2003. It was referred to the CC by
    Patricia Hewitt on 25 September 2003 (DTI press notice P/2003/487) under the
    provisions of the Fair Trading Act 1973 (FTA). The CC submitted its report
    on 23 December 2003.

 2. The Fair Trading Act 1973 empowered the Secretary of State to refer to the CC
    actual or proposed mergers for investigation and report which create or
    enhance a 25% share of supply in the UK (or a substantial part of the UK) or
    which involve the transfer of assets of over #70 million. Subject to
    transitional provisions (which apply in this case), the merger provisions
    have been superseded by the Enterprise Act 2002.

 3. If the CC concludes that the merger is not against the public interest, the
    Secretary of State has no power to prohibit the merger or to impose
    conditions.

 4. Copies of the CC report (Cm 6102) will be available from The Stationery
    Office.  The report is also available on the CC website: http://
    www.competition-commission.org.uk/inquiries/completed/2003/index.htm




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