Paint acquisition: no intervention

The Australian Competition and Consumer Commission will not intervene in the acquisition by Dulux Australia of the Maxwell Retail Group.

Dulux is a division of Orica Australia Pty Ltd and is the largest paint manufacturer in Australia, involved in the manufacture or architectural and decorative paints, protective coatings, automotive and industrial paints. Dulux markets the Cabots range in the woodstains and finishes market segment.

MRG is a division of Maxwell Chemicals Pty Ltd, which is a subsidiary of Gibson Chemical Industries Limited, a listed Australian chemical manufacturer. MRG's major product lines include Feast Watson solvent based timber finishes and stains for DIY users and Intergrain water-based timber finishes for DIY users.

The ACCC previously considered the relevant market definitions for the paint industry during the proposed acquisition by Wattyl of Taubmans. In the ACCC's determination the relevant market was defined as the national market for the manufacture and supply of architectural and decorative paint.

'The ACCC considers that the relevant market in relation to the acquisition of MRG by Dulux is also the national market for the manufacture and supply of architectural and decorative paint,' ACCC Chairman, Professor Allan Fels, said today.

'The acquisition of MRG will result in Dulux increasing its market share by a very small degree in the national market for the manufacture and supply of architectural and decorative paint.

'The ACCC has therefore concluded that the acquisition is unlikely to substantially lessen competition.'