MaxiTRANS Industries Limited - acquisition of Peki Transport Equipment Pty Limited
Summary
MaxiTRANS Industries Limited - acquisition of Peki Transport Equipment Pty Limited
File number
S2005/101
Industry
Transport equipment manufacturing
Outcome
Not Opposed
Date completed
29th November 2005
Merger type
Horizontal
Market definition
The national market for the supply of refrigerated or insulated solid-walled freight vehicle trailers and the national market for the supply of body panels for freight vehicles and trailers.
Competition analysis
On 29 November 2005, the ACCC decided that MaxiTRANS Industries Limited appears unlikely to be able to achieve a sustained increase in prices or profit margins as a result of its acquisition of Peki Transport Equipment Pty Limited due to relatively low barriers to entry and the ability and incentive of customers to sponsor new entry and expansion by existing trailer manufacturers. Other trailer manufacturers do not appear to face high sunk costs, technical manufacturing obstacles or other barriers to the supply of solid-walled refrigerated trailers.
The Acquisition does not appear to raise competition concerns in the national market for the supply of body panels for freight vehicles and trailers due to the presence of imports and the ease with which customers appear able to vertically integrate if MaxiTRANS raised its prices.
