Kumba Resources Limited - proposed acquisition of Ticor Limited
Summary
Proposed acquisition of Ticor Ltd by Kumba Resources Ltd
File number
S2005/72
Industry
Mineral sands and titanium dioxide pigment
Outcome
Not Opposed
Date completed
24th June 2005
Merger type
Horizontal
Market definition
1. The national market for the mining and processing of heavy mineral sands into upgraded titanium dioxide feedstocks; and
2. The national market for the production of titanium dioxide pigment
Competition analysis
On 24 June 2005, the ACCC formed a view not to oppose Kumba's purchase of the remaining shares in Ticor that it did not already control. Kumba's only presence in Australian mineral sands operations are made up by its existing interests in Ticor and its minority interest in a small Australian processor, Mineral Deposits Ltd. It appears that titanium dioxide feedstocks and pigment are globally traded products and that international producers could readily expand their supply to Australian customers in the event of any attempted price increase in Australia. There also appears to be substantial countervailing power for both titanium dioxide feedstock and pigment.
Accordingly, the proposed acquisition appears unlikely to substantially lessen competition in the relevant markets pursuant to section 50 of the Act.
