Basell Australia Pty Ltd - proposed acquisition of the polypropylene business of Qenos Pty Ltd.
Summary
Basell Australia Pty Ltd proposed acquisition of the polypropylene business of Qenos Pty Ltd.
File number
M2004/336
Industry
polypropylene
Outcome
Not Opposed
Date completed
15th March 2005
Merger type
Horizontal
Market definition
The national polypropylene market.
Competition analysis
On 29 March 2005, the Commission announced that it would not intervene in the Basell Australia proposed acquisition of the polypropylene sales business of Qenos. Basell had 72% of domestic polypropylene sales, Qenos 13% and the remaining 15% was imports. The acquisition will lead to only one Australian polypropylene producer. The level of imported polypropylene has however been more than 10 per cent for the past four years, and there was evidence from a significant number of market participants that the viability of imports was likely to constrain the pricing decisions of the merged entity. On the basis of these factors the Commission decided not to oppose the proposed acquisition.
