Green: No OFT guidance on M&S bid
Offer could trigger competition inquiry
Philip Green has issued a formal statement confirming that he has had no guidance from the Office of Fair Trading on whether a takeover of Marks & Spencer would trigger a competition inquiry.
The statement was made at the request of the Takeover Panel following press speculation that Green, who already owns the Bhs and Arcadia chains, had been given an indication by the competition authorities that a takeover would go through.
The statement to the Stock Exchange, issued through the Green family’s bid vehicle Revival Acquisitions, said: “Contrary to recent press speculation, informal guidance has not been sought from the Office of Fair Trading in relation to a possible offer by Revival for Marks and Spencer Group.”
Green would be keen to avoid a full-blown inquiry into any takeover. The issue could hinge on whether the OFT would look at the clothing retail market as whole, or simply womenswear. A 25 per cent market share is normally the trigger for a competition inquiry. Verdict Research estimates the combined M&S, Bhs and Arcadia operations would have a 20.3 per cent share of the UK clothing market, and 26.5 per cent of womenswear sales.
One suggestion has been that green might sell the Evans womenswear chain, part of the Arcadia group and estimated to account for about 2 per cent of womenswear sales, to avoid an investigation.
Revival’s initial bid for M&S was rejected by the high street giant last week. Green and his advisers are currently considering whether to return with a higher offer.
