On 5 December 2007, Xstrata Coal Pty Limited announced its intention to acquire all issued and outstanding shares in Resource Pacific Holdings Limited.
Outcome of assessment
Not opposed
Total review days *
26
Commenced public review
5th December 2007
Date completed
15th January 2008
Market definition
The ACCC considered the relevant markets to be the national market for the supply of thermal coal and the national market for the supply of metallurgical coal.
Competition analysis
The ACCC considered that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets. Factors which led to this conclusion included:
- the presence of a number of alternative suppliers of thermal and metallurgical coal including Rio Tinto, BHP Billiton, Peabody Energy Corporation and Anglo American; and
- that coal prices were largely determined by Japanese spot markets, limiting the potential for unilateral and coordinated coal price rises.
Review timeline
Date
Event
5th December 2007
ACCC commenced review under the Merger Review Process Guidelines.
26th December 2007
Closing date for submissions from interested parties.
15th January 2008
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.
