Fulton Hogan Pty Ltd - proposed acquisition of Pioneer Road Services Pty Ltd and certain assets from Hanson Construction Materials Pty Ltd

Fulton Hogan Pty Ltd

Hanson Construction Materials Pty Ltd
Pioneer Road Services Pty Ltd

Fulton Hogan Pty Ltd proposed to acquire 50% of Pioneer Road Services Pty Ltd and certain assets from Hanson Construction Materials Pty Ltd.

The ACCC considered the competitive effects of the proposed acquisition in the context of:
- state-based markets for the supply and laying of asphalt; and
- state-based markets for the supply and laying of bitumen spray seal.
The outcome of the analysis would have been unchanged had narrower regional markets been adopted.

The ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in any of the relevant markets. The ACCC identified a number of alternative suppliers and layers of asphalt and bitumen spray seal, and considered their presence sufficient to ensure the merged entity would not have the ability and incentive to impose a unilateral increase in price above competitive levels or reduce the quality of its service.

The ACCC considered that the merged entity was unlikely to engage in coordinated conduct with its competitors. In forming this view, the ACCC had regard to the number of alternative suppliers in the relevant markets as well as the fact that many customers (such as local governments) have a degree of countervailing power due to their ability to provide some of the relevant services in-house if necessary.