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national contracts and for local tool and equipment hire needs. Third parties were unconcerneda boutt he merger. 24. Consequentlyt,h e OFT does not believet hat it is or may be the case that the merger may be expectedt o resulti n a substantialle sseningo f competitionw ithina market or marketsi n the UnitedK ingdom. DECISION 25. This mergerw ill thereforen ot be referredt o the CompetitionC ommissionu nder section 33(1) of the Act. Source: Office of Fair Trading Page 62 AppendixE leven- SpeedyH ireM arketR eport2 007:S ustainedm omentum_- CatherinSe trattonI,n dependeAntn alyst Nearlys ix years ago Speedye mergedf rom subsidiarys tatust o becomea fullyl isted companyo n the LondonS tockE xchangeI.n the yearsi mmediatelyp recedingit s listing Speedyh ad expandedt o becomet he mainc hallengetro HSS in the tool hirem arketa nd soon wrested the number one position from the company whose name had become synonymous with its trade. As the most recent rankings from the Executive Hire News Top Ten survey( January2 007)i ndicate,S peedyh as continuedt o move aheado f the competition(.S eed iagrams1 and 2 on page6 4).A tlt he indicationsa re that Speedyi s not only the market leader in tool hire but it can now claim to be the largest player in the overallU K planUtool/equipmemnta rketa s its annualr evenueh as now overtakent hat of Hewden, the long time leader (see table below). UK revenues Year ended 335.5 282.5 !:1 1?,06 167 2 39 -0,1,06 1 633 31 12 06 31.030 6 89.1 est. 31.12.06 81 5 31 J 2.d"6 77.4 31 05 06 686 6{5- A major key to Speedy's success is that it has not been content to hire tools to the sector'se stablishedc ustomerb ase,w hich was originallyl argelyc entredo n the DIY market and the small tradesmen; the company has looked to expand and develop the potentialf or the sectorw ithint he wider constructionm arket.T his has been a perceptive move as the DIY marketi n particularh as declinedi n importancei n recenty ears.T hese changesi n the marketplaceh ave led to a blurringo f the traditionald istinctionb etween 'planth ire' and 'tool hire'a s non-operatedp lants pecialistsh ave moved intot ool hire and tool hirersh ave widenedt heir offeringsi n particularw ith compactp lanta nd nonmechanicala ccessa nd liftinge quipment.D emandf or mini-a nd micro-planth as grown in response to the trend to develop restricted sites (often brownfield), and the risks associated with manual handling. This year the Executive Hire News: Top Ten tool hirers are forecast to generate revenues of over t850 million; it is estimated that these ten hirers account for some 53% of their market, giving an overall value of some t1 .6 billion. (See diagrams 1 and 2 on page 64). 99.4 6. Brandon 7. Lavendon |
