Longyear Global Holdings Inc - proposed acquisition of DrillCorp Ltd
Type of assessment
Informal Review
Reference
25279
Acquirer(s)
Longyear Global Holdings Inc
Target(s)
DrillCorp Ltd
Industry
Mineral drilling
Summary
Longyear Global Holdings Inc proposes to acquire DrillCorp Ltd. Both firms supply surface minerals drilling services in Western Australia. Longyear also manufactures drilling equipment and conducts underground minerals drilling.
Outcome of assessment
Not opposed
Total review days *
16
Commenced public review
30th August 2006
Date completed
20th September 2006
Market definition
The ACCC considers that the relevant market is the Western Australian market for the provision of surface minerals drilling services.
Competition analysis
The ACCC formed the view that the proposed acquisition is unlikely to substantially lessen competition in the Western Australian market for surface mineral drilling services. The ACCC formed this view given that the merged entity will continue to face competition from several significant competitors and customers have relatively strong countervailing power.
Consequently, the ACCC has concluded that the proposed acquisition is unlikely to lead to a substantial lessening of competition in this market.
Review timeline
Date
Event
30th August 2006
ACCC commences review under the Merger Review Process Guidelines. Market inquiries commence
13th September 2006
Closing date for submissions from interested parties
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.
