Codan Ltd - acquisition of Minelab Electronics Pty Ltd
Type of assessment
Informal Review
Reference
30505
Acquirer(s)
Codan Limited
Target(s)
Minelab Electronics Pty Ltd
Industry
Communication and metal-detection products
Summary
Codan Limited acquired all shares and options in Minelab Electronics Pty Limited
Outcome of assessment
Not opposed
Total review days *
11
Commenced public review
18th February 2008
Date completed
3rd March 2008
Market definition
The ACCC considered the acquisition in the context of the national market for each of the following:
- the supply of countermine products;
- the supply of communication products (High Frequency (HF) radio, satellite and digital microwave radio); and
- the supply of printed circuit boards (for use in printed circuit assemblies).
Competition analysis
On 3 March 2008, the ACCC formed the view that the acquisition would be unlikely to result in a substantial lessening of competition in each of the relevant markets. Factors informing this conclusion included the following:
- in relation to countermine products and communication products; the acquisition is a bare transfer of market share. The ability for the merged entity to bundle or leverage its products is likely to be minimal with a number of alternate suppliers and potential import competition in each market acting as a competitive restraint; and
- in relation to printed circuit boards; the large number of alternate suppliers and high level of import competition.
Review timeline
Date
Event
18th February 2008
Parties advised estimated completion date of 6 March 2008. ACCC commenced review under the Merger Review Process Guidelines.
29th February 2008
Closing date for submissions from interested parties.
29th February 2008
Parties publicly announced completion of the acquisition.
3rd March 2008
ACCC announced it would not oppose the acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
