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Dept of Trade and Industry

Answer

Mr. Chidgey: To ask the President of the Board of Trade, pursuant to her answer of 19 November, Official Report, column 191, if she will list the undertakings given by (a) the Co-operative Wholesale Society and (b) Service Corporation International to the Monopolies and Mergers Commission, together with the dates by which (i) each undertaking was to be carried out and (ii) each undertaking was carried out. [18036] Mr. Nigel Griffiths: [holding answer 27 November 1997]: On 7 December 1987 the then Secretary of State for Trade and Industry accepted undertakings from the Co-operative Wholesale Society Limited (CWS) that it would before 21 October 1988 (or such later date as the Secretary of State might agree) sell either all the funeral businesses acquired from House of Fraser plc, or alternatively the businesses in those areas affected by the merger, as going concerns to a person other than a CWS subsidiary or certain retail societies. CWS also undertook to keep the Director General of Fair Trading (DGFT) informed as to its progress in divesting itself of the businesses. The four businesses situated in the areas most affected by the merger (Aberdeen, Falkirk and Perth) were sold by CWS on 22 April 1988. CWS also undertook to notify the DGFT before it acquires any enterprise carrying on the business of a funeral undertaker in Scotland; and that it will not refuse to supply coffins on normal commercial terms to any funeral undertaker in Scotland. These undertakings are on-going. On 18 December 1996, the then Minister for Corporate and Consumer Affairs accepted undertakings given by Service Corporation International (SCI). SCI undertook, within six months of the date of the undertaking: (a) to reduce its market share to no more than 25 per cent. by selling funeral directors' businesses in Brighton and Hove, Camberwell, Chiswick, Eastbourne and Sidcup (in relation to Chiswick, the sale of either of two specified SCI branches in that locality would be deemed to comply with this undertaking); (b) where it had a market share of more than 25 per cent. before the merger, to sell the funeral directors' businesses it acquired from Plantsbrook Group plc in Battersea, Bromley, Crawley, Fulham and Putney; The divestment required under (a) and (b) took place on 4 April 1997. SCI further undertook: (c) not to acquire any further funeral directing businesses within the ten localities without the DGFT's prior approval; (d) to disclose its ownership of funeral directing businesses prominently at the premises, in documentation given to customers, and in all advertisements or other promotional material used in connection with those businesses (for those SCI funeral businesses situated in the area examined by the MMC); (e) to display prominently details of competing crematoria at every SCI funeral directing branch in the area of an SCI crematorium; (f) not to discriminate in the prices charged for crematorium services between its own and other funeral directing businesses; and (g) to provide customers with a list of prices of competing crematoria where, in the area examined by the MMC, an SCI funeral directing business is situated within 20 miles of an SCI crematorium. Undertakings (c) to (g) are ongoing. On 3 November 1997 I accepted a variation to the undertakings given by SCI to allow it to acquire Birkbeck Securities Ltd. (Birkbeck) on condition that SCI disposed of the funeral directing business of Birbeck's subsidiary, H. Copeland & Son Ltd., within six months. That business has now been sold by SCI. I have placed copies of the relevant press notices with undertakings attached in the Library of the House.

Secondary information

Type

Written question

Reference

18036; 302 c90-1W

Session

1997-98

Subjects

Consumers Funerals Protection Mergers Monopolies and Mergers Commission Service Corporation International Cooperative Wholesale Society Crematoriums