THE action challenging a decision prohibiting Statoil Ireland Ltd from taking over Conoco Ireland Ltd, trading as Jet Oil, which was listed for hearing in the High Court yesterday, was adjourned until next Friday.

The two companies are suing the Minister for Enterprise and Employment, Mr Bruton, who on February 16th last made an order prohibiting the merger.

Statoil supplies motor fuel to 180 filling stations while Conoco supplies to 250 stations.

Last November, the Minister referred the proposed purchase to the Competition Authority for investigation under the Mergers, Takeovers and Monopolies Act. On February 9th, the Competition Authority recommended that the proposal should not be allowed to proceed.

Later yesterday, Mr Justice Geoghegan gave leave to the two companies to seek to quash the Minister's decision by way of judicial review, in addition to the action being taken on foot of the earlier summons.

Mr Paul Gallagher, SC, for the companies, said the judicial review application also arose out of the decision of the Minister to refuse the application for the proposed takeover.

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

It is also claimed the Minister purported to act on foot of a Competition Authority report which did not justify a finding that the exigencies of the common good warranted the prohibition of the proposed takeover.