FRH Group Pty Ltd - proposed acquisition of Frimokar (Aust) Pty Ltd
Type of assessment
Informal Review
Reference
28965
Acquirer(s)
FRH Group Pty Ltd
Target(s)
Frimokar (Aust) Pty Ltd
Industry
Road maintenance and cleaning
Summary
FRH Group proposes to acquire the assets of Frimokar that are used to retexturise and clean road surfaces using high pressure water sprays.
Outcome of assessment
Not opposed
Total review days *
18
Commenced public review
16th July 2007
Date completed
8th August 2007
Market definition
This proposed acquisition was assessed within the context of the market for road and runway cleaning and re-texturising using high pressure water sprays. The ACCC's conclusion would have been unchanged if a broader market were adopted. The geographic market is unclear but is likely to be at least the east coast of Australia.
Competition analysis
On 8 August 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:
-the likelihood that FRH would continue to be constrained by current and potential new entrants, due to relatively low barriers to entry; and
-FRH's and Frimokar's customers run sophisticated tender processes through which they can facilitate new entry in the event of any attempt by the merged entity to increase prices.
Review timeline
Date
Event
16th July 2007
ACCC commenced review under the Merger Review Process Guidelines.
3rd August 2007
Closing date for submissions from interested parties.
8th August 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.
