OJSC MMC Norilsk Nickel - proposed acquisition of LionOre Mining International Ltd
Type of assessment
Informal Review
Reference
28134
Acquirer(s)
OJSC MMC Norilsk Nickel
Target(s)
LionOre Mining International Ltd
Industry
Mining
Summary
OJSC MMC Norilsk Nickel proposes to acquire all of the issued and outstanding common shares of LionOre Mining International Limited.
Outcome of assessment
Not opposed
Total review days *
13
Commenced public review
7th May 2007
Date completed
23rd May 2007
Market definition
The proposed acquisition was considered in the context of the worldwide market for nickel production.
Competition analysis
On 23 May 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 include:
- nickel is a globally traded commodity with the majority of nickel produced in Australian being exported;
- there would be significant potential import competition with Australian customers likely to be able to access imports in response to an increase in domestic prices;
- alternative suppliers including CRVD Inco, BHP Billiton, Jinchuan, Xstrata and Sumitomo would be readily accessible in the nickel market; and
- prices for nickel are referenced to international mediums such as the London Metal Exchange and so the merged firm would be unlikely to be able to significantly increase prices.
Review timeline
Date
Event
7th May 2007
ACCC commences informal review under the Merger Review Process Guidelines.
15th May 2007
Closing date for submissions from interested parties.
23rd May 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.
