The paper reports that Sir Derek Morris, the Commission’s chairman, is looking to test new Enterprise Act proposals which empower the body to attach detailed conditions to mergers and acquisitions. This means that the Carlton/Granada deal, which would create a single ITV company, could be permitted with a set of contingent remedies, such as “divestments or regulatory controls”, attached to it.
The FT says that this would be the first time the Commission has acted in this way; previously it has only suggested hypothetical remedies.
Morris is reported to be seeking to ‘pilot’ the new policy even though the ITV merger investigation does not fall under the remit of the revised rules. The inquiry into the takeover battle for Safeway supermarket would also get this test treatment under Morris’ proposals.
The Commission is due to report on its inquiry of Carlton/Granada on 25 June.
