General Motors Corporation - proposed acquisition of the steering business of Delphi Corporation
Type of assessment
Informal Review
Reference
36980
Acquirer(s)
General Motors Corporation
Target(s)
Delphi Corporation
Industry
Automotive
Summary
General Motors Corporation (GMC) proposed to acquire the global steering business of Delphi Corporation (Delphi Steering).
Outcome of assessment
Not opposed
Total review days *
15
Commenced public review
2nd April 2009
Date completed
28th April 2009
Market definition
While the ACCC did not consider it necessary to reach a definitive view on market definition in this matter, the ACCC considered the proposed acquisition in the context of national markets for the manufacture of individual motor vehicle steering parts, namely steering gears, steering columns and steering pumps.
Competition analysis
The ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets on the basis that alternative suppliers, particularly global suppliers capable of importing steering components into Australia, would continue to competitively constrain GMC post acquisition.
In addition, the ACCC noted that steering component manufacturers gain limited economies of scale or other competitive advantage by producing steering components for more than one car manufacturer. As such, the ACCC considered that any shift of supply from existing suppliers of GMC to Delphi Steering would be unlikely to inhibit alternative suppliers' ability to compete.
Review timeline
Date
Event
2nd April 2009
ACCC commenced review under the Merger Review Process Guidelines.
15th April 2009
Closing date for submissions from interested parties.
28th 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.
