A completed merger between two businesses that provide treasury management advisory services (i.e. assistance to public and private sector bodies in managing cashflow and associated financial risks) has been provisionally cleared by the CC.

Sector Treasury Services Limited (STS) has bought Butlers, the trading division of ICAP plc, both of which provide treasury management advisory services.

During the CC investigation, ICAP submitted that it would have closed down Butlers if the merger had not gone ahead. The CC has concluded that the evidence supports ICAP’s submission, with the result that the merger does not reduce the number of competitors in the market. The CC also decided that despite plans to transfer Butlers' contracts to STS at the time of the merger, which would give STS a competitive advantage when the transferred contracts were subsequently retendered, the effect on competition would be small.