Linfox Transport Australia Pty Ltd - proposed acquisition of FCL Interstate Transport Services Pty Ltd
Type of assessment
Informal Review
Reference
25344
Acquirer(s)
Linfox Transport Australia Pty Ltd
Target(s)
FCL Interstate Transport Services Pty Ltd
Industry
Transport
Summary
Australia's largest privately owned transport company, Linfox, proposed to acquire rail freight forwarder FCL.
Outcome of assessment
Not opposed
Total review days *
13
Commenced public review
17th August 2006
Date completed
4th September 2006
Market definition
The relevant markets in this matter were considered to be:
- the market for rail freight forwarding between the eastern states and Perth; and
- the market for freight forwarding between the eastern states.
Competition analysis
The ACCC noted that the proposed acquisition would lead to increased market concentration in the relevant markets, but did not consider that this would lead to a substantial lessening of competition.
In the east-west market, the ACCC noted that the presence of a number of different rail freight forwarders, including the combined Toll/Patrick entity, would be likely to provide a competitive constraint on the merged entity post merger.
In the north-south market, the ACCC concluded that the presence of many different rail, road and sea freight forwarders, including the combined Toll/Patrick entity, would be likely to have the effect of providing a competitive constrain on the merged entity.
In the north-south market, the ACCC concluded that the presence of many different rail, road and sea freight forwarders, including the combined Toll/Patrick entity, would be likely to provide a competitve constrain on the merged entity.
Review timeline
Date
Event
17th August 2006
ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commence
1st September 2006
Closing date for submissions from interested parties
4th September 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.
