BG Group Plc - proposed acquisition of Pure Energy Resources Limited
Type of assessment
Informal Review
Reference
36450
Acquirer(s)
BG Group Plc
Target(s)
Pure Energy Resources Limited
Industry
Gas
Summary
BG Group plc proposes to acquire all of the issued shares in Pure Energy Resources Limited.
Outcome of assessment
Not opposed
Total review days *
25
Commenced public review
11th February 2009
Date completed
18th March 2009
Market definition
The ACCC considered the proposed acquisition in the context of:
-the market for production and supply of wholesale gas in the southern Queensland region connected by pipeline infrastructure; and
-the market for production and supply of wholesale gas in the southern states of Australia.
The ACCC notes that Pure Energy Resources has coal seam gas reserves (CSG) in Tasmania, however BG does not have any CSG exploration or production interests in Tasmania. Accordingly, there is no overlap between the parties in respect of Tasmania
Competition analysis
The ACCC considered that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets.
Factors informing this conclusion included the existence of several competitors which would continue to provide alternative supply options, and that the proposed acquisition would result in a relatively minor aggregation of gas reserves.
Review timeline
Date
Event
11th February 2009
ACCC commenced review under the Merger Review Process Guidelines.
11th March 2009
Closing date for submissions from interested parties.
18th March 2009
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.
