Business Law

Business Law
(Task 3)

Case Details
J Sainsbury plc / Jacksons Stores Ltd
 From:Competition and Markets Authority
 Closed:25 October 2004
 Case type:Mergers Case
 State:Closed
 Market sector:Retail and wholesale
 Outcome:Mergers - phase 1 clearance
 Parties involved: J Sainsburry and Jacksons store Ltd
 Affected market: Grocery retailing

Transaction
 J Saisburry acquired Jacksons by the way of a private share
agreement on 15 August 2004.
 Statutory deadline of 4 months expires on 14 December 2004.
 The 40 day administrative deadline for the OFT's decision in
this case is 26 October 2004

Jurisdiction
 As a result of this transaction J Sainsburry and Jacksons have
ceased to be distinct
 The UK turnover of Jacksons exceeds GBP 70 million, so it
satisfies the turnover test under section 23(1)(b) of the
Enterprise Act 2002.
 OFT believes that it is a relevant merger and does not violate
any law of competition and merger acts.
 Therefore, this merger case is not referred to Competition
Commission by OFT under section 22(1) of Act.

Assessment
 J Sainsburry is already a eminent organisation in the field of
grocery and convenience retailing It will not cause in
competitive disadvantage to any of the entity operating in the
marketing. Basically it will not pose any horizontal
competition concern.
 This acquisition will only lead to small increment in the J
Sainsburry upstream buyer power. Although, third parties have
expressed their concern for Sainsburry existing size and power
but Oft has not found any evidence which will be against
Competition law.
 OFT does not believe that this acquisition will increase any anti
competitive activity in the market.

Reference
J Sainsbury plc / Jacksons Stores Ltd 2004
[Online] Availaible Through:
<https://www.gov.uk/cma-cases/j-sainsbury-
plc-jacksons-stores-ltd> [Accessed on 18 May
2017]