SingTel Optus Pty Ltd to acquire Uecomm Ltd—the markets for fixed customer access, high bandwidth and transmission capacity services
On 25 May 2004 the ACCC received a submission from SingTel Optus Pty Ltd (Optus) with respect to the proposed acquisition of Uecomm Ltd (Uecomm).
On 7 July 2004 the ACCC decided that the proposed acquisition would be unlikely to substantially lessen competition in the fixed customer access, high bandwidth carriage and transmission capacity services markets for the following reasons:
a substantial lessening of competition is unlikely in relation to the CBD areas of Sydney, Melbourne and Brisbane due to the continuing presence of a number of other fibre optic network operators with broad network coverage
in the non-CBD metropolitan areas the overlap between the networks of Optus and Uecomm appears to be limited
Telstra Ltd is a strong competitor in all markets in which Optus and Uecomm are involved.
The ACCC also noted that some customers already consider new technologies, such as wireless, to be an alternative and that while such technologies may at present have some limitations they appear to have the potential to develop into a real alternative in the future.
Sydney Credit Union Ltd to acquire Parkes District Credit Union Ltd—the national market for financial services
On 5 July 2004 the Australian Prudential Regulation Authority (APRA) notified the ACCC of the proposed acquisition by Sydney Credit Union Ltd of the entire business of Parkes District Credit Union Ltd. Both entities are credit unions and authorised deposit taking institutions.
On 13 July 2004 the ACCC decided that the proposed acquisition would be unlikely to substantially lessen competition because the proposed merger would not cross the ACCC’s thresholds for either the exercise of unilateral market power or combined market power and therefore decided that it would not intervene in the proposed acquisition pursuant to s. 50 of the Trade Practices Act.
Woolworths Ltd Long Term Arrangement with Caltex Australia Ltd for the retail of petrol—markets for petroleum retail and wholesale, and grocery retail and wholesale
In August last year Woolworths Ltd and Caltex Ltd announced they were proposing to enter into a joint venture for the retailing of motor fuel. On 21 November Woolworths and Caltex opened the first three Caltex/Woolworths co-branded service stations pursuant to interim arrangements. The ACCC announced on 6 February 2004 that it would not oppose the short term arrangement but would review any long term arrangement between the parties.
In March this year Woolworths and Caltex announced they were finalising long term arrangements for the retailing of motor fuel. The ACCC has reviewed this matter in light of any material differences from the short term arrangement. The ACCC considered the impact of the proposed transaction on the markets for petrol retailing and wholesaling, and grocery retailing and wholesaling.
While Woolworths gained a small increase in market share in fuel retailing, the existence of other strong vertically integrated petroleum suppliers and the presence of Coles in the retail market lead the ACCC to conclude that the long term arrangement was unlikely to result in a substantial lessening of competition in any of the relevant markets.
