Darley Australia Pty Ltd - proposed acquisition of Woodlands Stud
Type of assessment
Informal Review
Reference
31710
Acquirer(s)
Darley Australia Pty Ltd
Target(s)
Woodlands Stud
Industry
Horseracing stud industry
Summary
On 16 April 2008, Darley Australia Pty Ltd advised the ACCC that it proposed to acquire Woodlands Stud from Inghams Enterprises Ltd.
Outcome of assessment
Not opposed
Total review days *
17
Commenced public review
16th April 2008
Date completed
9th May 2008
Market definition
Without reaching a final view, the ACCC considered that the relevant market was likely to be the market for breeding thoroughbred horses in Australia.
Competition analysis
On 9 May 2008, the ACCC formed the view that the acquisition would be unlikely to result in a substantial lessening of competition. Factors informing this conclusion included:
- the merged entity's market share would only increase by a small amount in terms of total number of stallions and in terms of stallion service fee revenues in the market for breeding thoroughbred horses in Australia;
- there is a large degree of risk associated with breeding thoroughbred horses such that the likelihood of any one stud farm establishing, maintaining or exercising market power over a substantial period of time appears to be relatively low; and
- barriers to entry into the national market for breeding thoroughbred horses appear to be relatively low.
Review timeline
Date
Event
16th April 2008
ACCC commenced review under the Merger Review Process Guidelines.
5th May 2008
Closing date for submissions from interested parties.
9th May 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.
