Unimin Australia Limited - proposed acquisition of Consolidated Rutile Limited
Type of assessment
Informal Review
Reference
37250
Acquirer(s)
Unimin Australia Limited
Target(s)
Consolidated Rutile Limited
Industry
Minerals
Summary
Unimin proposed to increase its existing 19.59% interest in CRL by way of an off-market takeover for all remaining shares.
Outcome of assessment
Not opposed
Total review days *
12
Commenced public review
17th April 2009
Date completed
5th May 2009
Market definition
While the ACCC did not consider it necessary to reach a definitive view on market definition in this matter, the proposed acquisition was considered in the context of Australian segments of global markets for the supply of (i) rutile and ilmenite; and (ii) zircon.
Competition analysis
The ACCC considered that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets due to the limited overlap between Unimin's and CRL's products, and the existence of a number of alternative suppliers of rutile, ilmenite and zircon (including Iluka Resources, Exxaro Australia Sand, BeMax Resources and Doral Mineral Sands). The ACCC also considered that, due to the existence of effective competitors, the merged firm would be unable to exercise market power in foreclosing its rivals by bundling products currently sold separately by Unimin and CRL.
Review timeline
Date
Event
17th April 2009
ACCC commenced review under the Merger Review Process Guidelines.
1st May 2009
Closing date for submissions from interested parties.
5th May 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.
