PARAMARIBO, Suriname, Friday July 3, 2015 – The Caribbean Community (CARICOM) Competition Commission has completed a preliminary assessment of Cable & Wireless’s US$3 billion acquisition of FLOW’s parent company and says the merger warrants further investigation.
And it will be holding consultations with affected member states to take the matter forward.
“Given that the findings of the preliminary examination indicate that an investigation is required, in accordance with Article 176.4 of the RTC [Revised Treaty of Chaguaramas], the Commission will hold consultations with the member states concerned to determine and agree on its jurisdiction to investigate the business transaction,” it said in a statement on Wednesday.
“The Commission expects this consultation phase with the member states to be completed in a timely manner. The Commission will then provide an update on its next steps.”
It added that the matter would be referred to CARICOM’s Council for Trade and Economic Development (COTED) “if there is a difference of opinion between the Commission and the member state regarding the nature and effects of the business conduct or the jurisdiction of the investigating authority”.
Last December, after Cable & Wireless, which trades in the Caribbean as LIME, and Columbus International, FLOW’s parent company announced the former’s purchase of its competitor, the Commission said it was examining the deal, stressing that it was important for the transaction’s impact on competition to be thoroughly considered.