LEGAL proceedings taken by Statoil Ireland Ltd challenging a decision to prohibit it from taking over Conoco Ireland Ltd, trading as Jet Oil, were struck out in the High Court yesterday.

Mr Paul Gallagher SC, for the companies, asked Mr Justice Smyth to strike out the case with no order. The judge said he would happily strike it out.

Statoil and Conoco had challenged a decision by the Minister for Enterprise and Employment, Mr Bruton, to prohibit the takeover. The Minister made the prohibition order in February.

Last November, he had referred the proposed purchase to the Competition Authority for investigation. It recommended the proposal should not be allowed to proceed.

On June 5th last, when the five day High Court action was to have opened, the court was told by Mr Gallagher that Statoil had applied to the Minister to amend his prohibition order. The action was then adjourned.

The case first came before the High Court last March. Mr Richard Nesbitt SC, also for the companies, said the application concerned the Proposed Merger or Takeover Prohibition Order 1996. At that time, he said the commercial realities of the situation made it a matter of utmost urgency.

In the judicial review proceedings, the companies claimed the Minister failed to give any or adequate reason for making the order, or why the takeover would be against the common good.

Last May, the High Court refused an application by Statoil for the right to see the full Competition Authority report recommending that the takeover be prohibited.

Mr Donal O'Donnell SC, for the Minister, claimed the Minister could not make full disclosure as the deleted passages of the report contained commercially sensitive information.