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Competition Commission publishes its advice in Centrica`s acquisition of Rough gas storage facility

The Competition Commission has published its report on Centrica's acquisition of the Rough gas storage facility, recommending clearance of the merger subject to the agreement of behavioural undertakings. The report concludes that there is not a sufficient basis for one of the key concerns raised at an early stage of the investigation - that, as a result of the acquisition, Centrica might have an incentive to withhold sources of flexible gas in order to push up wholesale gas prices. In reaching this conclusion the Competition Commission made use of an empirical analysis of the unilateral withholding incentive prepared by us.

For more information see Appendix to the Commission's report

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