Written question asked by Crispin Blunt (Conservative) on Tuesday, 6 February 2001, in the House of Commons. It was due for an answer on Wednesday, 28 February 2001. It was answered by Stephen Byers (Labour) on Wednesday, 28 February 2001 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Secretary of State for Trade and Industry, for what reasons he turned down the advice of the Director General of the Office of Fair Trading when reaching a decision on the merger of British Aerospace and GEC Marconi. - (Holding answer 8 February 2001).

Answer: Mr. Blunt: To ask the Secretary of State for Trade and Industry for what reasons he turned down the advice of the Director General of the Office of Fair Trading when reaching a decision on the merger of British Aerospace and GEC Marconi. [149481] Mr. Byers: [holding answer 8 February 2001]: The Boards of British Aerospace and GEC announced on 19 January 1999 that they had reached agreement on the principal terms of a proposed reconstruction under which Marconi Electronic Systems would be separated from GEC and merged with British Aerospace. The civil aspects of the proposed merger were cleared by the European Commission on 25 June 1999. I considered the military aspects of the proposed merger under the merger control provisions of the Fair Trading Act 1973. The reasons for my decision to seek and subsequently to accept from BAE Systems undertakings in lieu of reference to the Competition Commission are set out in my announcements of 9 September 1999 and 28 March 2000.

Secondary information