Credit Institutions (Financial Support) Act 2008
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Modification of application, etc., of certain provisions of Competition Act 2002. |
7.— (1) This section applies to a merger or acquisition (within the meaning of section 16 of the Act of 2002) that involves a credit institution or subsidiary where the Minister— | |
(a) after such consultation with the Central Bank and the Regulatory Authority as the Minister considers necessary, is of the opinion that— | ||
(i) the proposed merger or acquisition is necessary to maintain the stability of the financial system in the State, and | ||
(ii) there would be a serious threat to the stability of that system if the merger or acquisition did not proceed, and | ||
(b) certifies in writing to the parties to the merger or acquisition, the Competition Authority and the Governor that he or she is of that opinion. | ||
(2) Notwithstanding anything in the Act of 2002, a notification of a merger or acquisition to which this section applies shall be given to the Minister and not to the Competition Authority. | ||
(3) A determination, that a merger or acquisition to which this section applies may be put into effect, is referred to in this section as an approval. | ||
(4) A merger or acquisition to which this section applies and which has been notified to the Minister shall not be put into effect unless and until the Minister has made a determination in relation to the merger or acquisition under this section. | ||
(5) Where the Minister is of the opinion that in order to consider a merger or acquisition to which this section applies he or she requires further information, he or she may by notice require any one or more of the undertakings concerned to supply, within a specified period, specified information. An undertaking shall comply with such a direction. | ||
(6) On receipt of a notification under subsection (2), the Minister— | ||
(a) shall consult urgently with the Minister for Enterprise, Trade and Employment, the Governor, the Central Bank and the Competition Authority, | ||
(b) shall publish the notification in any way the Minister thinks fit, and | ||
(c) shall invite the making, in accordance with procedures provided for in the regulations, of submissions on the notification. | ||
(7) The Governor and the Competition Authority shall provide any advice, information and assistance that the Minister reasonably requires for the purposes of making a decision on a notification under subsection (2). | ||
(8) The Minister may appoint a suitably qualified person as a competition advisor for the purposes of assisting with the consideration of a notification under subsection (2). | ||
(9) Any person affected by a proposed merger or acquisition to which this section applies may make a submission to the Minister in relation to the proposed merger or acquisition. | ||
(10) The Minister shall make a decision whether to approve a merger or acquisition to which this section applies as soon as reasonably practicable after he or she receives the notification under subsection (2) for its approval. | ||
(11) The Minister shall approve a merger or acquisition to which this section applies if, in the Minister’s opinion, the result of the merger or acquisition will not be to substantially lessen competition in markets for goods or services in the State and, accordingly, that the merger or acquisition may be put into effect. | ||
(12) The Minister may approve a merger or acquisition to which this section applies even if he or she forms the opinion that the result of the merger or acquisition will be to substantially lessen competition in markets for goods or services in the State but that the merger or acquisition is necessary having regard to any or all of the following: | ||
(a) maintenance of the stability of the financial system in the State; | ||
(b) the need to avoid a serious threat to the stability of credit institutions; | ||
(c) the need to remedy a serious disturbance in the economy of the State. | ||
(13) The Minister, after considering a notification under subsection (2), may— | ||
(a) approve the merger or acquisition with or without conditions, or | ||
(b) refuse to approve the merger or acquisition. | ||
(14) In determining any conditions to be imposed in relation to a merger or acquisition, the Minister shall have regard to the effect of the merger or acquisition in the market for goods or services in the State, the maintenance of the stability of the financial system in the State, the need to avoid any serious stress in the stability of credit institutions and the need to remedy a serious disturbance in the economy of the State. In particular the Minister may impose such conditions as he considers appropriate to facilitate competition in the markets for those goods and services having regard to the aforesaid matters. | ||
(15) Sections 4(8) and 5(3) of the Act of 2002 shall apply to a merger or acquisition to which this section applies and, accordingly, for that purpose references in those provisions to Part 3 of the Act of 2002 shall be read as references to this section. | ||
(16) Part 3 of the Act of 2002 applies in relation to a merger or acquisition to which this section applies with— | ||
(a) the modifications specified in subsection (17), | ||
(b) any other necessary modifications, and | ||
(c) any adaptations of that Part’s provisions made by regulations under section 5 . | ||
(17) The modifications mentioned in subsection (16)(a) are— | ||
(a) references to the Competition Authority in sections 16, 18, 20 and 26 shall be read as references to the Minister; | ||
(b) sections 17, 19, 21, 22, 23, 24, 25 and 27 shall be disregarded; | ||
(c) so much of section 20 provision for the matters contained in which are made by this section shall be disregarded; | ||
(d) the following definition shall be substituted for the definition of “determination” in section 26: | ||
“ ‘determination’ means an approval of the Minister for Finance under section 7 of the Credit Institutions (Financial Support) Act 2008;”. | ||
(18) References in the Act of 2002 to Council Regulation (EEC) No. 4064/89 on the control of concentrations between undertakings should be read as references to Council Regulation (EC) No. 139/2004 on the control of concentrations between undertakings. | ||
(19) The Minister may make regulations to determine the procedures to be followed in making submissions under this section, including, without limit to the generality of the foregoing— | ||
(a) the form and type of submissions to be made to the Minister, | ||
(b) the appointment of representatives of persons having substantially the same interests, | ||
(c) the means by which confidential information is to be protected from public disclosure. | ||
(20) In this section “Act of 2002” means the Competition Act 2002 . |