The ACCC considered the acquisition in the context of the market for crushed limestone in the Kalgoorlie region and the market for quicklime in Western Australia.
Competition analysis
ABL sought to acquire Loongana's limestone quarry assets. It did not seek to acquire Loongana's quicklime facilities. Market enquiries indicated that the closure of Loongana's quicklime facilities occurred independently of ABL's proposed acquisition.
As part of its investigation into the proposed acquisition, the ACCC contacted a number of market participants in the industry including customers, competitors and potential competitors to assess the impact of the proposed acquisition.
The ACCC determined that the acquisition was not likely to substantially lessen competition in relation to the relevant market for crushed limestone, as market inquiries indicated that ABL was not a significant competitor to Loongana in this area of activity.
In relation to the market for quicklime in Western Australia, market inquiries indicated that absent the acquisition, Loongana's limestone quarry assets were not likely to have been utilised to create a strong and vigorous competitor to ABL and accordingly, the acquisition was unlikely to cause a substantial lessening of competition.
Review timeline
Date
Event
13th June 2006
ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced
14th July 2006
Closing date for submissions from interested parties
28th July 2006
Proposed date for announcement of ACCC's findings. Decision delayed to allow further market inquiries to be conducted.
8th August 2006
ACCC announced it would not oppose the proposed acquisition
* Total Review days = Total business days less public holidays and time during which the review was suspended.
