Day: May 17, 2018

Electro Rent, a global corporation with its headquarters in the US, acquired Microlease in February 2017. Both companies were close competitors in the rental of specialist equipment that tests and measures the performance of electronic devices used in industries such as telecommunications, defence, utilities and information technology.

The completed merger of the two businesses was referred to a group of independent panel members at the Competition and Markets Authority (CMA) for an in-depth phase 2 investigation in October last year, after an initial phase 1 investigation identified competition concerns.

The group has today published its final decision, finding that Electro Rent’s purchase of Microlease is likely to lead to a worse deal for renters of testing and measurement equipment. They found that Electro Rent, though significantly smaller than Microlease in the UK, was the only other rental company operating in the country to have the resources and stock to compete effectively with Microlease.

The group has therefore concluded that it is likely the merger will lead to a substantial lessening of competition in the sector, and a worse deal for UK customers. It has decided that the merged business will have to sell Electro Rent UK to a new owner, to be approved by the CMA, in order to preserve competition.

Simon Polito, Inquiry Chair, said:

The merged business would be the only suitable UK supplier for a large number of customers. It is unlikely that the new company would be prevented from using its position to increase prices or reduce its quality of service to customers by new entrants or expansion of established companies.

Having looked at this in detail and sought views from a range of market participants, we therefore consider that Electro Rent needs to sell its pre-merger UK business to preserve competition.

We have set strict purchaser criteria to make sure the buyer will be able to operate the business to compete effectively before the CMA approves the sale.

Full information on the Electro Rent / Microlease merger inquiry.

Notes for editors

1. The business that is to be sold, Electro Rent UK, is the former UK operations of Electro Rent. The merged company will continue to operate in the UK with the former Microlease business.
2. Electro Rent and Microlease are both global corporations each with worldwide annual revenues of around £120 million. The head office of Electro Rent is in the US, and that of Microlease is in the UK.
3. Electro Rent acquired Microlease in January 2017. In February 2017 the CMA called in the merger for a phase 1 review. Electro Rent initially offered to sell its UK business to a competitor, in order to overcome the CMA’s concerns. However, the purchaser withdrew from the deal, and the CMA therefore referred the case for a phase 2 investigation on 19 October 2017.
4. On 5 February 2018 the group published its provisional findings and notice of possible remedies and invited views. The group considered responses to its provisional findings and its remedies notice.
5. All the CMA’s functions in phase 2 merger inquiries are performed by inquiry groups chosen from the CMA’s panel members. The appointed inquiry group are the decision-makers on phase 2 inquiries.
6. The CMA’s panel members come from a variety of backgrounds, including economics, law, accountancy and/or business; the membership of an inquiry group usually reflects a mix of expertise and experience.
7. The members of this inquiry group are Simon Polito (Inquiry Chair), Jeremy Newman, Jayne Scott and David Thomas.
8. Media enquiries to the CMA should be directed to press@cma.gsi.gov.uk or 020 3738 6460.

A Downing Street spokesperson said:

In a trilateral meeting in the margins of the Western Balkans Summit in Sofia, Prime Minister Theresa May met with Chancellor Merkel and President Macron to discuss the decision by the US to withdraw from the Joint Comprehensive Plan of Action (JCPoA).

The leaders reiterated their firm commitment to ensuring the deal is upheld, stressing it is important for our shared security. They pledged to work with the remaining parties to the deal to this end.

The leaders stressed that Iran must continue to meet its own obligations under the deal.

The leaders reiterated their concerns about Iran’s ballistic missile programme and its regional activities, which clearly contribute to the destabilisation of its neighbours. They restated their commitment to tackling these issues.

Rolls-Royces, Bentleys and Daimlers were among the most popular luxury choices of car when getting married, with a black cab, fire engine and even a golf buggy standing out among the quirkier ways people chose to arrive on their big day.

While around 70% said they had the exact choice of transport they wanted, a horse and carriage was revealed as the most popular dream choice – perhaps inspired by the royal couple – for those who would have preferred to have had something different. Others said they would have liked to have made a more dramatic arrival, preferring to arrive by vintage bus, helicopter or even motorboat.

Deciding on how to get there – and who will be doing the driving – is a vital part of any wedding checklist. But around 37% did not realise that the quickest and easiest way to view or share driving licence information when hiring a car is by using DVLA’s View and Share driving licence service.

With so much to get ticked off ahead of the occasion, this service could help take away a lot of the hassle for whoever is doing the driving – whether they’re hiring a 1976 Rolls Royce Silver Shadow, a Ford Capri or the latest Audi R8.

Dudley Ashford, Head of Drivers Services at DVLA explains:

You can use DVLA’s online service to view your driving record, and to find out the types of vehicles you can drive. You can also check for any penalty points or disqualifications. It’s also the simplest way for the person driving on the big day to share their driving record with a car hire company.

The service can be found here.

Quoted statistics are based on responses to a DVLA survey.

Issued for and on behalf of Dame Judith Hackitt.

The Chair of the Independent Review of Building Regulations and Fire Safety has found that fundamental reform is needed to improve building safety and to rebuild trust among residents of high-rise buildings.

At the heart of the new system will be a requirement for the construction industry to take responsibility for the delivery of safe buildings, rather than looking to others to tell them what is or is not acceptable.

Dame Judith Hackitt was appointed by the government to lead the review in light of the system failures revealed by testing carried out in the wake of the Grenfell Tower tragedy. She has published her findings today (17 May 2018).

Dame Judith says:

This is a systemic problem. The current system is far too complex, it lacks clarity as to who is responsible for what, and there is inadequate regulatory oversight and enforcement. Simply adding more prescription or making amendments to the current system, such as restricting or prohibiting certain practices, will not address the root causes.

The recommendations in this report will lead to a clearer, simpler but more robust approach to the building and on going management of high rise residential buildings.

Dame Judith Hackitt

Building on her interim report, which found that the current system of building and fire safety is not fit for purpose and set out 6 key areas for further work, Dame Judith’s final report finds that a new regulatory framework for higher-risk residential buildings is required to improve building safety and ensure that residents are safe.

The report sets out an ambitious vision for a new framework which will improve standards for both new and existing buildings. Many of the ideas proposed could be applied to a wider range of buildings and aim to drive change more broadly.

Many in the sector have called for fundamental change. It will be important now for industry to show leadership in driving this forward to achieve genuine and lasting culture change.

The ultimate test of this new framework will be the rebuilding of public confidence – the system needs to be more transparent and the relationship between landlords and tenants needs to be one of partnership and collaboration.

The report makes recommendations relating to:

• a less prescriptive, outcomes-based approach to the regulatory framework to be overseen by a new regulator that can drive the right behaviours
• clearer roles and responsibilities throughout the design and construction process and during occupation, to ensure real accountability for building safety
• residents to be consulted and involved in decisions affecting the safety of their home and listened to if they have concerns
• a more rigorous and transparent product testing regime and a more responsible marketing regime
• industry to lead on strengthening competence of all those involved in building work and to establish an oversight body

Dame Judith is calling on the government to set out a clear plan for implementation and for industry and regulators to start ‘living’ the changes now.

Further information

See Dame Judith Hackitt’s final report.

Dame Judith Hackitt’s interim report was published in December 2017.

Background to the review

• The review of building safety and fire regulations was commissioned in July 2017 following the Grenfell Tower fire on 14 June 2017.
• It was commissioned by the then Secretary of State for Communities and Local Government, Sajid Javid, and the then Home Secretary, Amber Rudd.
• The review’s terms of reference were published in August 2017.
• An interim report was published in December 2017.
• Dame Judith brought industry representatives together for a summit held in January 2018.
• Working groups were established and their findings were reported back to Dame Judith in March 2018.

The review examined:

• the regulatory system around the design, construction and on-going management of buildings in relation to fire safety
• related compliance and enforcement issues
• international regulation and experience in this area

The report is separate to the Grenfell Tower Inquiry and, importantly, does not replace the criminal investigation or seek to identify the cause of the Grenfell Tower tragedy.

The report is forward looking and focused on establishing a sufficiently robust regulatory system for the future, in this way providing assurance to residents that the buildings they live in are safe and remain so.

Dame Judith Hackitt has today shared her report with Sir Martin Moore-Bick, chair of the independent inquiry into the Grenfell fire.

Short biography of Dame Judith Hackitt

Dame Judith was Chair of the Health and Safety Executive from October 2007 to March 2016. She previously served as a health and safety commissioner between 2002 and 2005. She was made a Dame in the 2016 New Year Honours for services to health and safety and engineering, and in particular for being a role model for young women. She was awarded a CBE in 2006.

In April 2016, she was appointed as Chair of EEF, The Manufacturers’ Organisation.

Dame Judith is a chemical engineer and graduated from Imperial College in 1975. She worked in the chemicals manufacturing industry for 23 years before joining the Chemical Industries Association (CIA) in 1998. She became Director General of CIA (from 2002-2005) and then worked in Brussels for the European Chemical Industry Association (CEFIC).

She was elected as a Fellow of the Royal Academy of Engineering in July 2010 and currently chairs the External Affairs Committee. Dame Judith is a Fellow of the Institution of Chemical Engineers and was President of IChemE from May 2013 to May 2014.

Dame Judith is also Chair of Semta – the Science, Engineering and Manufacturing Technologies Alliance – and a non-executive director of the High Value Manufacturing Catapult.

• 2 aerospace projects aimed to maximise engine performance and efficiency set to receive more than £10 million of government funding
• Aerospace Minister Richard Harrington confirmed the investment on a visit to Rolls-Royce’s Derby facility today
• the money is part of a £3.9 billion investment from industry and the government as part of the modern Industrial Strategy

Funding support for the latest technologies in aerospace engine manufacturing and performance, was announced today by Aerospace Minister Richard Harrington.

The 2 projects, jointly funded by Rolls-Royce and the Aerospace Technology Institute (ATI), will bring together the best talent in the industry from academia and businesses to work on world-renowned research for aero-engine maintenance and manufacturing. The funding will support research to develop new engine cooling systems and cutting-edge technology to stop the formation of ice crystals on engines when cruising at high altitudes.

Aerospace Minister Richard Harrington confirmed the £10.7 million government funding towards the Rolls-Royce-led R&D projects on a visit to Rolls-Royce’s engineering and manufacturing facilities in Derby. In June 2017, Rolls-Royce committed to invest £150 million in its UK facilities to support plans of doubling engine production.

Aerospace Minister Richard Harrington said:

As the home of the first jet engine, the UK has an aerospace heritage that’s revered around the world. Through our modern Industrial Strategy, we will continue this legacy and have already committed to work with industry to invest £3.9 billion to further transform the sector.

These 2 projects will see the best talent from the industry come together to help the UK reach even greater heights in aerospace excellence.

The latest projects, worth over £21 million in total, are supported by ATI and Rolls-Royce with academic industry partners. This will be delivered through Innovate UK – the UK’s innovation agency.

Chief Technology Officer for Rolls-Royce Paul Stein said:

We welcome the support announced by the UK government today. Rolls-Royce is focused on pioneering new technologies and developing the next generation of highly skilled engineers by working with academia and industry. These research projects will play an important role in developing the innovative technologies needed to enhance performance, improve efficiency and reduce emissions of future aircraft.

Projects

The projects set to receive funding are:

COAST (Critical Oil and Air System Technologies)

£3.7 million, focuses on the development of engine systems to support cabin cooling, and advanced sealing solutions for oil systems and bearing chambers. The technologies developed in COAST will support reductions in fuel burn and improve the reliability of oil systems and the integration of engine systems with the airframe. This project is led by Rolls-Royce plc. in collaboration with Bladon Jet Ltd an SME based in Coventry and the Universities of Nottingham, Oxford and Sheffield.

DE-ICER (Design Excellence – Ice Crystal Engine Research)

£7 million, focuses on tackling the formation of ice crystals that can damage an aircraft. The project aims to target current gaps in ice crystal formation research and develop anti-icing systems and technology to protect the engine. This project is led by Rolls-Royce plc. in collaboration with Satavia Ltd, an SME in Cambridge, GKN Aerospace and the University of Oxford.

In 2015, the government and industry committed to spend £3.9 billion to further transform aerospace research until 2026 to help this sector build on our unique strengths in the UK through the Industrial Strategy.

The Industrial Strategy sets out a long-term plan to boost the productivity and earning power of people throughout the UK. It sets out how we are building a Britain fit for the future – how we will help businesses create better, higher-paying jobs in every part of the UK with investment in skills, industries and infrastructure.