ONE member of the Competition Authority concluded that the proposed acquisition by Unilever of Lyons Irish Holdings should not be allowed proceed as it would restrict competition.

Mr Patrick Massey was the only member of the three man authority who held to this position, after the announcement that the Unilever owned Lipton brand was to be withdrawn from the Irish market.

As it was accepted that a number of entry barriers to the market existed, it would appear only relatively large, well established firms could enter on a sufficient scale, Mr Massey said.

A merger, which removes a potential entrant to the type of market conditions which prevail in the tea market, would have the effect of restricting competition."

It removed the possibility of Unilever seeking to re enter the market, Mr Massey said.

"Given the indications that significant entry barriers already exist, were the largest firm in the Irish market to be acquired by Unilever, which claims to be the largest tea supplier in the world, this could be expected to further discourage other potential entrants."

The merger would increase the market power of the merged entity and restrict competition within the State.