Maryborough Sugar Factory Limited and Bundaberg Sugar Ltd - proposed joint venture in Queensland sugar milling operations
Type of assessment
Informal Review
Reference
41684
Acquirer(s)
Maryborough Sugar Factory Limited
Target(s)
Bundaberg Sugar Ltd
Industry
Sugar milling
Summary
Maryborough Sugar Factory Limited and Bundaberg Sugar Ltd propose to form a joint venture for the milling of sugar in Queensland.
Outcome of assessment
Not opposed
Total review days *
31
Commenced public review
6th May 2010
Date completed
18th June 2010
Market definition
The ACCC considered the proposed joint venture in the context of the following markets:
- a Mulgrave/Babinda market for the acquisition of cane and supply of cane crushing services to growers within a 50 kilometre radius of the Mulgrave and Babinda mills;
- a Queensland market for the acquisition of sugar exporting and marketing services;
- a national market for the supply of molasses; and
- a global market for the supply of raw sugar.
Competition analysis
The ACCC considered that the proposed joint venture was unlikely to lead to a substantial lessening of competition due to:
a. the only mills with any potential for overlap are the Babinda (owned by Bundaberg) and Mulgrave (owned by Maryborough) mills but even in this case the current lack of any effective competition between the two mills is expected to continue in the foreseeable future.
b. in the remaining markets, Maryborough has only a small or negligible share of the markets and the joint venture will lead to only very small changes in market concentrations.
Review timeline
Date
Event
6th May 2010
ACCC commenced review under the Merger Review Process Guidelines.
27th May 2010
Closing date for submissions from interested parties.
18th 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.
