CICRA identify "issues" in Randalls' proposed Boat House Group takeover

Wednesday 16 May 2018

Randalls' plans to take over the Boat House at St. Aubin and the Farmhouse at St. John are to be reviewed in more detail by CICRA, after the competition regulator said it had identified issues needing further investigation.

CICRA was notified of the proposed takeover on 1 March and it was expected that, if approved, the deal would be concluded around Easter.

Randalls’ Managing Director Gavin Reid said that their plans constituted a “wonderful opportunity for Randalls to further strengthen our estate with two iconic venues and subsequently offer our numerous Randalls Loyalty Card holders improved diversity when looking to redeem or be rewarded with Loyalty points.” If approved, the takeover would bring Randalls' outlets to 49.

However, following a two-week consultation on the potential acquisition and an initial review, CICRA concluded that there are issues that warrant further investigation. It has therefore decided to continue investigating the deal - a process referred to as 'Phase 2'.

Pictured: Gavin Reid, Randalls' Managing Director.

Sarah Livestro, CICRA Legal Director, said: "CICRA considers a number of transactions each year with the vast majority, but not all, receiving approval at the first stage with the average time taken by CICRA being 18 days.

"While most takeovers have little effect on competition, some can harm competition and result in, for example, increased prices, decreased quality or choice for consumers or less innovation. O'ur objective is to protect consumers from these undesirable outcomes. It is important we understand thoroughly the impact this particular takeover would have."

Under Jersey's competition law, CICRA has the power to approve the takeover, allow the takeover to proceed subject to conditions, or refuse to allow the takeover to go ahead.