Moreton Island Ferries Pty Ltd - proposed acquisition of assets of Stradbroke Ferries Limited
Type of assessment
Informal Review
Reference
31580
Acquirer(s)
Moreton Island Ferries Pty Ltd
Target(s)
Stradbroke Ferries Limited
Industry
Ferry services
Summary
Moreton Island Ferries Pty Ltd proposed to acquire certain assets of Stradbroke Ferries Limited. The assets included properties on Moreton Island and the Combie Trader ferry business, though not the ferry (barge) itself.
Outcome of assessment
Not opposed
Total review days *
29
Commenced public review
9th April 2008
Date completed
20th May 2008
Market definition
The ACCC did not reach a definitive view on market definition in this matter as the outcome of the competition analysis was unaffected if a broader or narrower approach was adopted. The ACCC considered, however, that there were likely to be separate product markets for passenger, vehicle and freight ferry serivces. The ACCC also gave consideration to a geographic market encompassing south east Queensland, as well as to more localised markets.
The ACCC noted that there were also likely to be additional markets relating to other assets involved in the transaction, such as for the properties on Moreton Island.
Competition analysis
The ACCC considered that the proposed acquisition was unlikely to substantially lessen competition in terms of section 50 of the Trade Practices Act. In reaching this view the ACCC had regard to a number of factors, including the likelihood that the Combie Trader service would cease to operate even if the acquisitions did not occur, and the likelihood of a new operator emerging to constrain the pricing of Moreton Island Ferries. Please refer to the ACCC's media release for more information.
