AB Volvo - proposed acquisition of Nissan Diesel Motor Co. Ltd
Type of assessment
Informal Review
Reference
27689
Acquirer(s)
AB Volvo
Target(s)
Nissan Diesel Motor Co. Ltd
Industry
Commercial Trucks
Summary
AB Volvo proposes to acquire 100% of the shares of Nissan Diesel Motor Company Limited
Outcome of assessment
Not opposed
Total review days *
12
Commenced public review
16th March 2007
Date completed
3rd April 2007
Market definition
The ACCC formed the view that market definition was not conclusive to the decision but proceeded on the basis of the relevant market being the Australian market for the manufacture, assembly and distribution of commercial trucks.
Competition analysis
On 3 April 2007, the ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant market. Factors informing this conclusion included:
- post-acquisition there would remain a large number of competitors in the market which would constrain the prices of the merged firm;
- there would be a large number of imports (which may be assembled in Australia) which would be readily able to increase in response to increased demand;
- there is significant countervailing power by some consumers; and
- the market is a growing and innovative market in which it appears that growth is sustainable.
Review timeline
Date
Event
16th March 2007
ACCC commenced review under the Merger Review Process Guidelines.
26th March 2007
Closing date for submissions from interested parties
3rd April 2007
ACCC announced it would not oppose the proposed acquisition
* Total Review days = Total business days less public holidays and time during which the review was suspended.
