WIREDGOV

The Competition Commission (CC) has provisionally cleared the completed joint venture between Tradebe Environmental Services Limited (Tradebe) and SITA UK Limited (Sita).

Both companies provided healthcare risk waste (HRW) services in various parts of the UK. The CC’s inquiry has focused in particular on customers located around Birmingham and Gloucester as those most likely to be affected by any loss of competition among suppliers.

The CC’s analysis shows that prior to the joint venture, SRCL, as the largest supplier of HRW services, represented the main competition to the parties while the parties did not provide strong competition for each other. SRCL will continue to provide effective competition to the joint venture, which in turn will be a more effective competitor for SRCL. The analysis showed that after the merger, prices were not expected to increase and some customers would benefit from lower prices due to efficiencies resulting from the merger.

Chairman of the Tradebe/Sita Inquiry Group and CC Deputy Chairman, Alasdair Smith, said:

“We have provisionally concluded that the presence of a strong competitor (SRCL) will stop Tradebe/Sita from being able to raise prices as a result of the joint venture. In fact, some customers could benefit from lower prices as a result of increased rivalry, as the joint venture may well be able to compete more effectively with SRCL than the two companies could individually.”

Healthcare risk waste is a category of healthcare waste that requires treatment prior to disposal because it is potentially infectious or could otherwise be harmful to health. The large majority of healthcare waste is produced by major NHS organizations such as Acute Trusts and Clinical Commissioning Groups. It is also produced by the private healthcare sector and in other settings.

The Office of Fair Trading (OFT) referred the case to the CC on 29 October 2013, and the CC is expected to publish its final report by 14 April 2014.

A summary of the provisional findings is available on the inquiry home page along with all other information relating to the investigation. The full provisional findings report will be published shortly.

The CC previously investigated healthcare risk waste mergers involving SRCL/Stericycle in 2006 (PDF, 24 Kb)  and 2012.
 
Any interested party is invited to respond to the provisional findings report, in writing, by no later than 13 March 2014. To submit evidence, please email tradebe-sita@cc.gsi.gov.uk or write to:

Inquiry Manager
Tradebe-Sita merger inquiry
Competition Commission
Victoria House
Southampton Row
LONDON
WC1B 4AD

Notes for editors

1. The CC is an independent public body, which carries out investigations into mergers, markets and the regulated industries. In April, the CC will join with the competition and certain consumer functions of the Office of Fair Trading (OFT) to form the new Competition and Markets Authority.

2. The members of the Inquiry Group are: Alasdair Smith (Chairman of the Inquiry Group and CC Deputy Chairman), Sarah Chambers, Tony Morris and Bob Spedding.

3. The Enterprise Act 2002 empowers the OFT to refer to the CC completed or anticipated 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.

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 this inquiry, including the terms of reference and other key documents, as well as on the CC and its procedures, including its policy on the provision of information and the disclosure of evidence, can be obtained from the CC website at: www.competition-commission.org.uk.

6. Enquiries should be directed to Rory Taylor or Siobhan Allen or by ringing 020 7271 0242.