“Monopoly Threat”

Press, Volume C, Issue 29701, 20 December 1961, Page 21

“Monopoly Threat”

(N.Z.P.A .-Reuter—Copyrigh t)

LONDON, Dec. 18. If the merger between Imperial Chemical Industries and Courtaulds goes through, the group will be among the largest in the world, said the "Financial Times.” The new group would be the largest producer of manmade fibres in the world, it would produce 90 per cent, of all man-made fibres in Britain, and it would be by far the largest paint manufacturer. One effect of the proposed merger could be seen in the position of rayon with nylon and terylene. Tyre Cords Outside the field of textiles, rayon (a Courtauld product) had a very large Industrial demand, primarily in the form of tyre cord, but it was under pressure from nylon and terylene. Terylene was an exclusive

1.C.1. product, and nylon was shared between the two companies, through their 50 per cent, holdings in British Nylon Spinners. The advantages of the merger were easily seen. The “Financial Times” suggested that the proposal indicated that there was a strong case for suggesting that mergers were subject to too little scrutiny in Britain. U.S. Law It would never be allowed in the United States because of its monopoly implication for synthetics. The "Financial Times” asked whether the merger would be in Britain’s national interest. The United States system, in spite of drawbacks, did at least make companies curb their natural inclinations to expand and monopolise difficult markets.