Xstrata Plc - proposed acquisition of Jubilee Mines NL
Type of assessment
Informal Review
Reference
29866
Acquirer(s)
Xstrata Plc
Target(s)
Jubilee Mines NL
Industry
Mining and Minerals Exploration
Summary
Xstrata Plc, through its wholly owned subsidiary Ithaki Australia Pty Limited, proposed to acquire all of the issued shares of Jubilee Mines NL
Outcome of assessment
Not opposed
Total review days *
12
Commenced public review
29th October 2007
Date completed
13th November 2007
Market definition
The ACCC considered the relevant market to be the market for the supply of nickel.
Competition analysis
The ACCC decided that the proposed acquisition was not likely to result in a substantial lessening of competition in the market for the supply of nickel. Factors which led to this conclusion included:
- The market concentration of the merged entity would not be sufficient to raise competition concerns, as Xstrata represented a relatively small proportion of nickel supply;
- There were sufficient alternative suppliers in the market for nickel, including Norilsk Nickel, CVRD and BHP Billiton; and
- Nickel is listed on the London Metals Exchange, where its trading price is determined by international demand and supply, limiting the potential for unilateral and coordinated nickel price rises.
Review timeline
Date
Event
29th October 2007
ACCC commenced review under the Merger Review Process Guidelines.
9th November 2007
Closing date for submissions from interested parties.
13th November 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.
