Granada/Rental Holdings: conditional decision not to refer
On 19th April 2000, Stephen Byers announced his decision not to refer the merger of the consumer rental business of Granada and Rental Holdings (forming Box Clever) to the Competition Commission, provided the parties give undertakings to remedy competition concerns raised by the merger.
The proposed merger would combine the consumer rental businesses of two of the largest providers of electrical goods for rent, particularly TVs and VCRs. Stephen Byers has asked the DGFT to seek undertakings from the parties requiring Box Clever:
(a) not to increase rental charges (except to cover any tax increase) for all existing contracts and for new customers who rent for more than five years without upgrading their equipment;
(b) not to charge an administration fee for upgrading equipment (except in respect of direct-to-home rental where the fee will be capped at the current level);
(c) to make a one-off offer under which, in appropriate circumstances, all renters of more than five years who have not previously upgraded or added to their equipment will be offered the opportunity to upgrade to more modern equipment at no extra charge; and
(d) to adopt a minimum rental period of 12 months for all customers.
(DTI Press Release P/2000/284)
