Transpacific Superior Pak Pty Ltd - completed acquisition of Nylex Materials Handling Division
Type of assessment
Informal Review
Reference
38068
Acquirer(s)
Transpacific Superior Pak Pty Ltd
Target(s)
Nylex Materials Handling Division
Industry
Plastic household and industrial products
Summary
Transpacific Superior Pak Pty Ltd - completed acquisition of Nylex Materials Handling Division
Outcome of assessment
Not opposed
Total review days *
33
Commenced public review
17th August 2009
Date completed
30th September 2009
Market definition
The relevant markets were considered to be:
-the supply of 2 Wheel mobile garbage bins (2 Wheel MGB) in NSW (NSW Market); and
-the supply of 2 Wheel MGB in VIC (VIC Market).
Competition analysis
As a result of the acquisition TPI would become the second largest supplier of 2 Wheel MGB in the VIC Market and NSW Market. In particular, TPI would significantly consolidate its position in the VIC Market where it would increase its market share. The main customers of the target firm, Nylex, are direct rivals of TPI in waste collection markets and there are possible conglomerate effects between the supply of 2 Wheel MGBs and waste collection services.
However, market inquiries indicated that competition concerns are unlikely to arise in either market given the merged entity would continue to face effective competition in both markets from other bin manufacturers such as Sulo, and a lesser extent Mastec as well as from imports, which are likely to have the ability to expand supply and constrain the merged firm.
In light of the factors above, the ACCC considered that the acquisition is unlikely to substantially lessen competition in the relevant markets.
Review timeline
Date
Event
14th August 2009
Transpacific Superior Pak Pty Ltd acquired Nylex Materials Handling Division.
17th August 2009
ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced.
1st September 2009
Closing date for submissions from interested parties.
30th September 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.
