Garden City Plastics - acquisition of Reko and Plant-it-Rite

Garden City Plastics

Reko
Plant-it-Rite

Garden City Plastics (GCP) acquired Reko and certain assets of Plant-it-rite. GCP, Reko and Plant-it-rite all manufactured and distributed plastic pots and distributed allied source products (for example fertiliser, stakes and soil additives).

The ACCC considered the following markets in its review of GCP's acquisitions:
- A national market for the supply of large horticultural plastic containers;
- A national market for the supply of small horticultural plastic pots;
- A national market for the supply of retail pots;
- A national market for the supply of plastic trays; and
- A national market for the supply of allied source products.

The ACCC considers that GCP faces sufficient competitive constraints post-acquisitions and that the acquisitions are unlikely to have caused a substantial lessening of competition in any of the relevant markets. This conclusion is informed by the following factors:
- GCP did not purchase any manufacturing equipment for the manufacture of any allied source product from either Reko or Plant-it-rite. Therefore, the ACCC considers that GCP's acquisitions of Reko and Plant-it-rite did not result in an increase in GCP's market concentration in the national market for the supply of allied source products;
- There are substitutes available to customers for all types of plastic pots;
- Barriers to entry are moderate for entry into the national market for the supply of large horticultural plastic containers;
- Barriers to entry are low into the national market for the supply of small horticultural plastic pots and retail plastic pots; and
- There are imports available to customers for all types of plastic pots.