The Australian Competition and Consumer Commission will authorise a joint venture between DuPont (Australia) Limited and Ticor Limited on behalf of their subsidiaries, Howson Algraphy (Australasia) Pty Limited (Howson) and Ticor Chemical Company Pty Limited (TCC), to manufacture sodium cyanide and of associated exclusive marketing arrangements, ACCC Chairman, Professor Allan Fels, announced today.
Had the parties not approached the Commission for authorisation, they may have contravened section 50 of the Trade Practices Act which prohibits mergers and acquisitions that substantially lessen competition or section 47 of the Act which prohibits exclusive dealing.
"It is proposed that Howson and TCC form an unincorporated joint venture vehicle to make solid and liquid sodium cyanide at the existing Gladstone plant," Professor Fels said. "The venture will lead to a substantial upgrade of existing plant and lift current capacity by 14,000 tonnes per annum, to 40,000 tonnes. In turn, as demand for sodium cyanide is expected to rise this will lead to a reduction in demand for imported product.
"The exclusive marketing agreement whereby DuPont Australia would be sole marketer for the joint venture's output, supersedes one already in place, and extends the agreement for a further ten years.
"While the ACCC felt that there was potential for anti-competitive detriment from these proposals on balance the public benefits relating to efficiency, import replacement and environmental benefits are likely to outweigh and such detriment."
