Britax Childcare Pty Ltd proposes to acquire BabyLove Products Pty Ltd. Both firms manufacture and supply child car restraints throughout Australia, and also import and distribute infant wheeled goods (strollers and prams) onto the Australian market.
Outcome of assessment
Not opposed
Total review days *
80
Commenced public review
1st May 2006
Date completed
20th September 2006
Market definition
1) The market for child car restraints for ages up to 3 to 4 years old (type A, type B and type AB restraints) in Australia;
2) The market for child booster seats for ages 3 to 7 years old (type BE and type E restraints) in Australia; and
3) The market for infant wheeled goods (strollers and prams) in Australia.
Competition analysis
In relation to the market for child car restraints for ages up to 3 to 4 years old, the ACCC formed the view that in the high end segment of the market, Britax is the very clear leader. BabyLove is not a significant competitor in this segment, so the acquisition will only marginally increase Britax's share of sales. In the low and medium end segments, the bargaining power of large retail chains is relatively strong, and potential barriers to entry such as brand loyalty are less significant.
In terms of the market for child booster seats for ages 3 to 7 years old, the ACCC formed the view that barriers to entry are not high, brand loyalty is not particularly significant and countervailing power is relatively strong.
In relation to the market for infant wheeled goods, the ACCC formed the view that there is a high level of imports (over 95 per cent), and supply is not heavily concentrated.
After consideration of the information provided by market participants and other information before it, the ACCC formed the view that the proposed acquisition is unlikely to result in a substantial lessening of competition in the markets outlined above, and decided that it would not oppose the proposed acquisition.
Public competition assessment
ACCC Public Competition Assessment 17th October 2006 D06+71607.pdf (101.5 KB)
Statement of issues
Statement of Issues 27th July 2006 D06+48179.pdf (54.0 KB)
Review timeline
Date
Event
1st May 2006
ACCC commences review under the Merger Review Process Guidelines.
5th May 2006
ACCC commences market inquiries
19th May 2006
Closing date for submissions from interested parties.
20th June 2006
Proposed announcement of ACCC's findings
21st June 2006
Proposed announcement delayed until early July to allow for provision of additional information. Timeline suspended
6th July 2006
Proposed announcement delayed until mid July to allow for provision of additional information
11th July 2006
Proposed announcement delayed until late July (delay requested by merger parties to allow for provision of additional information)
19th July 2006
Additional material received from merger parties. Timeline recommenced.
27th July 2006
ACCC publishes a Statement of Issues outlining preliminary competition concerns
10th August 2006
Closing date for submissions from interested parties responding to the ACCC's Statement of Issues
30th August 2006
Proposed announcement of ACCC's findings delayed to allow for further inquiries
20th September 2006
ACCC announced that it would not oppose the acquisition
* Total Review days = Total business days less public holidays and time during which the review was suspended.
