BAE Systems Australia Ltd - proposed acquisition of Tenix Pty Ltd
Type of assessment
Informal Review
Reference
30425
Acquirer(s)
BAE Systems Australia Ltd
Target(s)
Tenix Pty Ltd
Industry
Provision of products and services to defence
Outcome of assessment
Not opposed
Total review days *
35
Commenced public review
21st January 2008
Date completed
11th March 2008
Market definition
The ACCC considered the proposed acquisition in relation to separate national markets for the acquisition of defence products and the sustainment of defence products in the following areas:
- Aerospace
- Marine
- Vehicles and Land
- Weapons and Munitions and
- Electronic Systems
The ACCC also considered the national market for the acquisition of base and garrison support services, as well as a secondary market for the provision of products and services by subcontractors to prime contractors.
Competition analysis
The ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. In reaching this view, the ACCC considered that the merged firm's pricing decisions are likely to be constrained by the presence of existing competitors as well as actual and potential import competition. The ACCC also considered that vertical and conglomerate issues are not likely to arise, as it is unlikely that the proposed acquisition will place the merged firm in an improved position to leverage its position across the relevant markets.
Review timeline
Date
Event
21st January 2008
ACCC commenced review under the Merger Review Process Guidelines.
8th February 2008
Closing date for submissions from interested parties.
11th March 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.
