The Competition and Markets Authority (CMA) has issued what is known as a ‘hold-separate’ order as it continues its probe on the now finalised deal between The Ardonagh Group subsidiary Atlanta Investment Holdings C Limited and Bennetts Motorcycling Services Limited.
Completed after receiving the necessary approvals from the Financial Conduct Authority, the sale won’t see Ardonagh and Bennetts combining just yet, as the CMA conducts its inquiry. Officially called an initial enforcement order (IEO), the hold-separate order is effective on the transaction’s completion date and mandates the two camps to carry on as is, in the interim.
“The overriding purpose of the IEO is to ensure that Ardonagh and Bennetts are held separate during the course of the CMA’s merger investigation and that the competitive structure of the markets in which Ardonagh and Bennetts operate is maintained,” noted Ardonagh in a release.
According to the order seen by Insurance Business, no integration will take place for now, and neither will changes to key staff or the transfer of business ownership or control.
Read more: Ardonagh-Bennetts deal under CMA probe
The competition watchdog stated: “Except with the prior written consent of the CMA, Ardonagh, Ardonagh UK, and Atlanta shall not, during the specified period, take any action which might prejudice a reference of the transaction under section 22 or 33 of the Act or impede the taking of any action under the Act by the CMA which may be justified by the CMA’s decisions on such a reference.”
The CMA, which was referring to the Enterprise Act 2002, has set a September 16 deadline for its phase one decision.
