Arrow Energy Limited - proposed acquisition of Beach Petroleum's Tipton West Joint Venture CSG project
Type of assessment
Informal Review
Reference
37143
Acquirer(s)
Arrow Energy Limited
Target(s)
Beach Petroleum's Tipton West Joint Venture CSG project
Industry
Gas, coal seam gas (CSG)
Summary
Arrow Energy Limited proposed to acquire Beach Petroleum Limited's 40% interest in the Tipton West Joint Venture CSG project and surrounding exploration acreage.
Outcome of assessment
Not opposed
Total review days *
22
Commenced public review
6th April 2009
Date completed
11th May 2009
Market definition
The ACCC considered that two markets were relevant for the assessment of this matter:
- the market for the production and supply of wholesale gas in the southern Queensland region connected by pipeline infrastructure (including Brisbane, Gladstone and Mt Isa); and
- the market for the production and supply of wholesale gas in the southern states (NSW, VIC and SA).
Competition analysis
The ACCC considered that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets. Factors informing this conclusion included:
- the low aggregation of gas reserves which would be held by the merged entity relative to the total gas reserves available for supply by other wholesale gas producers and suppliers in southern Queensland; and
- the existence of several competitors who continue to provide alternative supply options for customers.
Review timeline
Date
Event
6th April 2009
ACCC commenced review under the Merger Review Process Guidelines.
24th April 2009
Closing date for submissions from interested parties.
11th 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.
