Queensland Gas Company Limited - proposed acquisition of Sunshine Gas Ltd
Type of assessment
Informal Review
Reference
33773
Acquirer(s)
Queensland Gas Company Limited
Target(s)
Sunshine Gas Ltd
Industry
Gas
Summary
Queensland Gas Company Ltd proposes to acquire all of the issued shares in Sunshine Gas Limited.
Outcome of assessment
Not opposed
Total review days *
21
Commenced public review
12th September 2008
Date completed
10th October 2008
Market definition
The ACCC considered that two markets were relevant for the assessment of this matter:
- the market for the production and supply of wholesale gas in the southern Queensland region connected by pipeline infrastructure (including Brisbane, Gladstone and Mt Isa); and
- the market for the production and supply of wholesale gas in the southern states (NSW, VIC and SA).
The ACCC recognised that Sunshine Gas is an emerging producer of coal seam gas in Queensland, and while it is not currently an active supplier of wholesale gas, it would be likely to commence supplying wholesale gas in the relevant timeframe in which to consider the proposed acquisition.
Competition analysis
On 10 October 2008, the ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets.
Factors informing this conclusion included:
- the low aggregation of gas reserves which would be held by the merged entity relative to the total gas reserves available for supply by other wholesale gas producers and suppliers in southern Queensland; and
- the existence of several competitors who continue to provide alternative supply options for customers.
Review timeline
Date
Event
20th August 2008
ACCC commenced public monitoring of the proposed acquisition, pending receipt of a submission from QGC.
12th September 2008
ACCC commenced review under the Merger Review Process Guidelines upon receiving a submission from QGC.
29th September 2008
Closing date for submissions from interested parties.
10th October 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.
