Competition Commission (National)
Time:2007-5-24    Click:546

Mass spectrometry is an analytical technique used to measure the elements that make up a sample. The technique has many applications, for example to distinguish between synthetic and naturally occurring substances, which could be used to check the authenticity of food. IRMS is a particular type of mass spectrometry. GVI and Thermo are the two largest suppliers of IRMS instruments.

In its final report, published today at http://www.competition-commission.org.uk, the CC has concluded that the merger would lead to a substantial lessening of competition in the markets for two types of IRMS instrument: Gas IRMS and Thermal Ionization Mass Spectrometry (TIMS). This could enable the merged company to increase prices to the customers of such instruments, who include university science departments, research institutes and the nuclear industry. This confirms the CC's provisional findings, which were published in March 2007. (See news release dated 22/03/2007 at: http://www.competition-commission.org.uk/press_rel/2007/march/index.htm).

Thermo will now be required to sell either the whole GVI business or those assets relating to the supply of Gas IRMS and TIMS instruments, in order to maintain competition in these markets. Thermo will be required to sell the business, either as a whole or in parts, to a viable competitor or competitors approved by the CC. If Thermo does not achieve a sale, an independent divestiture trustee will be appointed to do so.

Notes for editors
1. The CC is an independent public body, which carries out investigations into mergers, markets and regulated industries.

2. The Enterprise Act 2002 empowers the OFT to refer to the CC completed or proposed mergers for investigation and report which create or enhance a 25 per cent share of supply in the UK (or a substantial part thereof) or where the UK turnover associated with the enterprise being acquired is over £70 million.

3. The members on the Thermo/GVI inquiry group are: Dr Diane Coyle (Group Chairman), Christopher Bright and Carolan Dobson.

4. The CC has a 24-week period in which it is required to publish its report, which may be extended by no more than eight weeks if it considers that there are special reasons why the report cannot be published within that period.

5. Further information on the CC and its procedures, including its policy on the provision of information and the disclosure of evidence, can be obtained from its website at: http://www.competition-commission.org.uk.