Woodbridge Australia Group Pty Ltd - proposed acquisition of Automotive Foam Components Pty Ltd
Type of assessment
Informal Review
Reference
38358
Acquirer(s)
Woodbridge Australia Group Pty Ltd
Target(s)
Automotive Foam Components Pty Ltd
Industry
Automotive Foam Components
Outcome of assessment
Not opposed
Total review days *
24
Commenced public review
5th May 2010
Date completed
7th June 2010
Market definition
The ACCC considered the competitive effect of the proposed acquisition in the context of a national market for the manufacture and supply of automotive original equipment manufacturing (OEM) foam to manufacturers of automotive components.
Competition analysis
The ACCC considered the proposed acquisition was unlikely to substantially lessen competition as:
- customers of the merger parties (automotive component manufacturers) and motor vehicle producers (MVPs) appeared to have strong countervailing power based on the ability to integrate foam manufacturing into their operations, the existence of a global supply chain and the strong reliance placed on global benchmarking of prices and quality standards within the industry; and
- imports, particularly of assembled automotive components, were also likely to constrain the merged firm.
Review timeline
Date
Event
5th May 2010
ACCC commenced review under the Merger Review Process Guidelines.
19th May 2010
Closing date for submissions from interested parties.
3rd June 2010
Former proposed date for announcement of ACCC's findings, of 3 June 2010, amended to allow for further inquiries.
7th June 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.
