Boom Logistics Ltd - acquisitions of the James Group, Camilleri Industries Australia and Sherrin Hire
Type of assessment
Informal Review
Reference
25230
Acquirer(s)
Boom Logistics Ltd
Target(s)
James Group
Industry
Crane distribution and hire
Summary
Boom Logistics Ltd - acquisitions of the James Group, Camilleri Industries Australia and Sherrin Hire. Boom Logistics Ltd provides lifting solutions to companies including the provision of crane-hire services. James Group, Camilleri Industries Australia and Sherrin Hire provided crane-hire services prior to the acquisitions. James Group also had an exclusive distributorship arrangement with Tadano cranes, which has also been acquired by Boom Logistics Ltd.
Outcome of assessment
Not opposed
Total review days *
23
Commenced public review
25th August 2006
Date completed
26th September 2006
Market definition
The ACCC considered the following markets in its review of Boom Logistics Ltd's acquisitions:
- Regional markets for wet and dry hire of franna and other small cranes;
- Regional markets for wet and dry hire of associated lifting equipment;
- A national market for the wet and dry hire of crawler and pin jib cranes;
- A national market for the wet and dry hire of tower cranes;
- A state-wide market for wet and dry hire of rough terrain cranes;
- A state-wide market for wet and dry hire of all terrain and hydraulic cranes; and
- A national market for the sale and distribution of cranes.
Competition analysis
The ACCC considers that Boom Logistics Ltd 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:
- There are substitutes available to customers in the supply of cranes;
- There are other crane-hire competitors available in each relevant crane-hire market; and
- Customers of wet and dry hire of rough terrain, all terrain and hydraulic cranes have some countervailing power.
Review timeline
Date
Event
25th August 2006
ACCC commences review under the Merger Review Process Guidelines.
1st September 2006
Market inquiries commence.
12th September 2006
Closing date for submissions from interested parties.
26th September 2006
ACCC decided not to oppose the acquisitions
* Total Review days = Total business days less public holidays and time during which the review was Suspended.
