Skyson Pty Limited - proposed acquisition of Plaspak Group Limited's plastic packaging business.
Type of assessment
Informal Review
Reference
23580
Acquirer(s)
Skyson Pty Limited
Target(s)
Plaspak Group Limited
Industry
Plastic packaging industry
Summary
Skyson Pty Limited - proposed acquisition of Plaspak Group Limited's plastic
packaging business.
Outcome of assessment
Not opposed
Total review days *
14
Commenced public review
29th June 2006
Date completed
18th July 2006
Market definition
The ACCC assessed the proposed acquisition under the narrowest possible markets, these being the national markets for the supply of non-beverage rigid plastic containers and plastic closures.
Competition analysis
1. Non-beverage rigid plastic containers
The ACCC decided that the proposed acquisition was unlikely to substantially lessen competition in the national market for non-beverage rigid plastic containers.
The ACCC found that there were low barriers to entry and expansion in the market for non-beverage rigid plastic containers. In particular, it appeared that there were low establishment costs for smaller suppliers and new entrants were able to access second-hand equipment to reduce costs. In addition, there was a high level of import competition.
2. Plastic Closures
The ACCC considered that the proposed acquisition was unlikely to substantially lessen competition in the national market for plastic closures because:
(i) market concentration would not change significantly; and
(ii) import levels were relatively high.
Review timeline
Date
Event
29th June 2006
ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced.
18th July 2006
ACCC announced that it would not oppose the proposed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was Suspended.
