BHP Billiton Mitsubishi Alliance (BMA) - proposed acquisition of New Saraji Metallurgical Coal Project
Type of assessment
Informal Review
Reference
33188
Acquirer(s)
BHP Billiton Mitsubishi Alliance (BMA)
Target(s)
New Saraji Metallurgical Coal
Industry
Coal mining
Summary
BHP Billiton Mitsubishi Alliance (BMA) proposes to acquire the New Saraji Metallurgical Coal Project (New Saraji) from New Hope Corporation Ltd.
Outcome of assessment
Not opposed
Total review days *
17
Commenced public review
18th July 2008
Date completed
11th August 2008
Market definition
The ACCC considered the proposed acquisition in the context of markets for the production and supply of metallurgical coal. The ACCC did not consider it necessary to form a definitive view on market definition since the proposed acquisition was unlikely to substantially lessen competition in either a broad or a narrow market.
Competition analysis
The ACCC considered that the proposed acquisition was unlikely to result in a substantial lessening of competition since:
* there will be no overlap with the existing metallurgical coal production of BMA since New Saraji is not currently producing any volumes of metallurgical coal for export or sale; and
* there will continue to be significant Australian and international alternative suppliers of metallurgical coal with substantial existing metallurgical coal resources to constrain the merged entity.
Review timeline
Date
Event
17th July 2008
BMA announced the proposed acquisition.
18th July 2008
ACCC commenced review under the Merger Review Process Guidelines.
6th August 2008
Closing date for submissions from interested parties.
11th August 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.
