A J Lucas Group Ltd - proposed acquisition of Mitchell Drilling Corporation Pty Ltd
Type of assessment
Informal Review
Reference
33223
Acquirer(s)
A J Lucas Group Ltd
Target(s)
Mitchell Drilling Corporation Pty Ltd
Industry
Drilling services
Summary
A J Lucas proposes to acquire the Australian operations of Mitchell Drilling.
Outcome of assessment
Not opposed
Total review days *
16
Commenced public review
24th July 2008
Date completed
14th August 2008
Market definition
The ACCC considered the proposed acquisition in the context of the national markets for the supply of drilling services (excluding gas and oil, but not coal seam gas).
Competition analysis
The ACCC considered that the proposed acquisition would result in little or no increase in concentration in the relevant markets. Factors informing this conclusion included:
1. the presence of competing drilling service providers would pose a competitive constraint on the merged entity;
2. barriers to entry and expansion for drilling services were found to be relatively low; and
3. customers could readily switch to a competing provider of drilling services at little cost.
Review timeline
Date
Event
24th July 2008
ACCC commenced review under the Merger Review Process Guidelines.
7th August 2008
Closing date for submissions from interested parties.
14th 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.
