Fitness First Australia Pty Ltd - acquisition of three fitness centres from LivingWell Australia Pty Ltd
Type of assessment
Informal Review
Reference
24795
Acquirer(s)
Fitness First Australia Pty Ltd
Target(s)
LivingWell Australia Pty Ltd
Industry
Fitness Centres
Summary
Fitness First has acquired three fitness clubs from Living Well Australia located at Willoughby (NSW), Carindale (QLD) and Robina (QLD).
Outcome of assessment
Not opposed
Total review days *
14
Commenced public review
12th September 2006
Date completed
9th October 2006
Market definition
The supply of fitness centre services in the local markets of Willoughby (NSW), Carindale (QLD) and Robina (QLD).
Competition analysis
On 9 October 2006, the ACCC decided not to oppose Fitness First's acquisition of three LivingWell fitness centres in Willoughby, Carindale and Robina. It appears that in each of the local markets for the supply of fitness centre services, the merged entity would face competition from a number of other fitness centre suppliers as well as smaller boutique and women's only fitness centre providers. The ACCC also considered that barriers to entry and expansion are low.
After consideration of the merger factors the ACCC formed the view that the acquisitions are unlikely to result in a substantial lessening of competition.
Review timeline
Date
Event
12th September 2006
ACCC commences review under the Merger Review Process Guidelines. Market inquiries commence.
18th September 2006
Closing date for submissions from interested parties.
21st September 2006
ACCC timeline suspended pending further information requested from Fitness First 12 September 2006.
27th September 2006
ACCC timeline recommenced upon receiving information requested from Fitness First 12 September 2006.
9th October 2006
ACCC decided not to oppose the acquisition.
* Total Review days = Total business days less public holidays and time during which the review was Suspended.
