Goodstart Childcare Limited - proposed acquisition of various childcare centres from ABC Learning Limited
Type of assessment
Informal Review
Reference
40686
Acquirer(s)
Goodstart Childcare Limited
Target(s)
ABC Learning Centres Limited
Industry
Childcare
Summary
Goodstart Childcare Limited proposed to acquire 678 ABC Learning Centres.
Goodstart was a syndicate comprised of the following four not-for-profit organisations:
- Mission Australia,
- the Benevolent Society,
- the Brotherhood of St Laurence, and
- Social Ventures Australia.
Mission Australia operated 29 childcare centres throughout Australia.
Outcome of assessment
Not opposed
Total review days *
10
Commenced public review
3rd March 2010
Date completed
17th March 2010
Market definition
The ACCC noted that an area of overlap between Mission Australia's centres and the proposed Goodstart centres was in the south east of Melbourne where post-acquisition, Goodstart and Mission Australia would own and operate 23 centres within a 10 kilometre radius.
The ACCC considered the proposed acquisition in the context of the market for the supply of long day childcare services within an approximate 10 kilometre radius surrounding Mission Australia's existing centres located in Eumemmerring and Doveton in the south east of Melbourne.
Competition analysis
The ACCC concluded that, due to a significant number of alternative long day childcare centres and that the large majority of these centres had vacancies, the proposed acquisition was unlikely to substantially lessen competition in the relevant market.
Review timeline
Date
Event
3rd March 2010
ACCC commenced review under the Merger Review Process Guidelines.
12th March 2010
Closing date for submissions from interested parties.
17th March 2010
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.
