Billabong International Ltd - proposed acquisition of Rush Lifestyle Australia Pty Ltd retail stores
Type of assessment
Informal Review
Reference
43297
Acquirer(s)
Billabong International Ltd
Target(s)
Rush Lifestyle Australia Pty Ltd
Industry
retail sports clothing
Summary
Billabong International Ltd (Billabong), via a subsidiary GSM (Operations) Pty Ltd, proposes to acquire 36 retail stores of Rush Lifestyle Australia Pty Ltd (Rush).
Outcome of assessment
Not opposed
Total review days *
19
Commenced public review
26th August 2010
Date completed
21st September 2010
Market definition
The ACCC considered the competitive effects of the proposed acquisition in the context of the following markets:
-Markets for the retail supply of casual wear, including board sports apparel, accessories and hardware in Cairns, Burleigh Heads and Mooloolaba, where the parties overlap; and
-National market for the wholesale supply of casual wear, board sports apparel, accessories and hardware.
Competition analysis
The ACCC took into account, amongst other factors:
-That Billabong would continue to be competitively constrained in the local markets through the presence of other competing specialist sports apparel, accessories and hardware retailers in close proximity to Billabong/Rush stores in Cairns, Burleigh Heads and Mooloolaba;
-The availability of specialist independent retailers as alternate avenues for wholesale distribution by rival wholesalers; and
-The presence of alternate wholesalers of board sports apparel, accessories and hardware, including well-recognised brands.
Accordingly, on 21 September 2010, the ACCC decided not to oppose the proposed acquisition.
Review timeline
Date
Event
26th August 2010
ACCC commenced review under the Merger Review Process Guidelines.
10th September 2010
Closing date for submissions from interested parties.
21st September 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.
