Black & White Cabs - proposed acquisition of business and assets of Palcrest Pty Ltd and related entities
Type of assessment
Informal Review
Reference
42324
Acquirer(s)
Black & White Taxi Management Pty Ltd and related entities
Target(s)
Palcrest Pty Ltd and related entities
Industry
Taxis
Summary
Black & White Taxi Management Pty Ltd (part of the Black & White Cabs Group of companies) and related entities propose to acquire the business and assets of Palcrest Pty Ltd and related entities. Palcrest operates a taxi management business that manages taxi licences and associated vehicles that are affiliated with Yellow Cabs Toowoomba. The proposed acquisition also involves certain taxi licences that are leased or managed by Palcrest.
Outcome of assessment
Not opposed
Total review days *
24
Commenced public review
21st June 2010
Date completed
10th August 2010
Market definition
The ACCC considered the following markets in its assessment of the proposed transaction:
- regional markets (i.e. Toowoomba, Oakey and Crows Nest, each in Queensland) for the supply of taxi services to consumers;
- regional markets (i.e. Toowoomba, Oakey and Crows Nest, each in Queensland) for the supply of taxi depot services to taxi operators; and
- the Queensland market for the supply of booking dispatch services to taxi operators.
Competition analysis
In reaching its conclusion not to oppose Black & White's proposed acquisitions in Toowoomba, the ACCC took into account, amongst other factors:
- that Black & White Cabs would continue to be constrained from degrading services to consumers and raising fees to taxi operators due to the continuing presence of Yellow Cabs in the Toowoomba taxi service area; and
- the regulation of the provision of taxi services in Toowoomba including pricing to end consumers.
The ACCC did not oppose the separate acquisitions by Black & White of a single taxi licence in the towns of Oakey and Crows Nest, Queensland, as each acquisition represents a bare transfer of the licence in that market.
Review timeline
Date
Event
21st June 2010
ACCC commenced review under the Merger Review Process Guidelines.
5th July 2010
Closing date for submissions from interested parties.
12th July 2010
ACCC requested further information from the merger parties. ACCC timeline suspended.
16th July 2010
ACCC received a response to its information request of 12 July 2010 from the merger parties. ACCC's indicative timeline recommenced.
20th July 2010
ACCC requested further additional information from the merger parties. ACCC timeline suspended.
21st July 2010
Former proposed date for announcement of ACCC's findings, 29 July 2010, amended to allow for further information from the merger parties.
2nd August 2010
ACCC received a response to its information request of 20 July 2010 from the merger parties. ACCC's indicative timeline recommenced.
10th August 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.
