Hunan Valin Iron and Steel Group Company Ltd - proposed acquisition of Fortescue Metals Group Ltd
Type of assessment
Informal Review
Reference
37104
Acquirer(s)
Hunan Valin Iron and Steel Group Company Ltd
Target(s)
Fortescue Metals Group Ltd
Industry
Iron ore
Outcome of assessment
Not opposed
Total review days *
3
Commenced public review
1st April 2009
Date completed
3rd April 2009
Market definition
The ACCC considered the proposed acquisition in the context of the following markets: the global seaborne supply of iron ore lump; the global seaborne supply of iron ore fines; the national (Australian) supply of iron ore lump; and the national (Australian) supply of iron ore fines.
Competition analysis
The ACCC considered that the proposed acquisition by an iron ore customer was unlikely to result in a substantial lessening of competition on the basis that Fortescue would not have the ability to unilaterally depress iron ore prices by increasing supply, and would not have the incentive to depress iron ore prices due to the interests of its shareholders.
Review timeline
Date
Event
1st April 2009
ACCC commenced review under the Merger Review Process Guidelines.
3rd April 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.
