On 19 July 2005 the ACCC decided not to oppose the proposed acquisition because:
the ability of the merged firm to increase prices and profit margins is likely to be constrained by strong competition arising from:
the prevalence of imports in the dental consumables market
the variety of sources from which imports can be obtained
the availability of new sources of imports
the existence of relatively low barriers to entry and expansion in this market as evidenced by recent new entries to the market
attempts by the merged firm to exercise market power is likely to be constrained by customers who are likely to switch easily to other suppliers because, in this market:
substitute products and brands are widely available
customers are generally characterised by price-sensitivity rather than brand or distributor loyalty.
