asked the Secretary of State for Trade and Industry what study he has made of the financial and legal difficulties that nearly prevented the merger between Dunlop and Pirelli and which discourage other such mergers; and what steps are being taken in conjunction with other governments to facilitate such voluntary mergers in future.

Mergers between large companies in different countries inevitably raise complex problems for the companies concerned. From discussions with Dunlop, it does not appear that Government requirements are such as to discourage a merger of this kind, but I would be glad to consider any particular aspects that my hon. Friend may bring to my notice.