John Zink / Hamworthy Combustion Group

OFT closed case: Acquisition by John Zink Company and Coen Company affiliates of Hamworthy Combustion Group

• From: Competition and Markets Authority
• Published: 23 June 2011

• Case type: Mergers
• Case state: Closed
• Market sector: Energy
• Outcome: Mergers - phase 1 found not to qualify
• Closed: 23 June 2011

Affected market: Process burners, industrial burners and after sales service

No. ME/5031/11

1. The OFT sent Koch Industries an Inquiry Letter on 12 May 2011 requesting further details on this acquisition, which was reported in the press on 11 April 2011. The parties responded on 1 June 2011, advising that the merger had completed on 20 May 2011 and that in their view the merger did not qualify for investigation under the UK turnover or share of supply test. An Invitation to Comment was published on 1 June 2011 with a date for responses of 15 June 2011.
2. A response to the ITC was received from a third party who expressed concern that the parties were the two main competitors in the UK markets for power burner boilers and therefore had high market shares in that market. Further questions were put to Koch Industries to understand more about the market for power burner boilers and their sales in the UK. Responses to those questions made clear that Koch Industries' sales in the UK were of a nature and minimal value that meant that the OFT had no jurisdiction to investigate this merger.
3. On the basis of the information available to it, the Office of Fair Trading has decided that the completed acquisition of Hamworthy Combustion by Koch Industries does not qualify for investigation under the mergers provisions of the Enterprise Act 2002 (the Act), because neither the UK turnover test nor the share of supply test in section 23 of the Act is met. A relevant merger situation has, therefore, not been created.

Published 23 June 2011