GSM(Operations) Pty Limited - proposed acquisition of Surf Dive 'n' Ski (SDS) and Jetty Surf
Type of assessment
Informal Review
Reference
43657
Acquirer(s)
Billabong International Ltd
Target(s)
Surf Dive 'n' Ski (SDS) and Jetty Surf
Industry
Sports apparel
Summary
Billabong International Ltd (Billabong), via a subsidiary GSM (Operations) Pty Ltd, proposes to acquire 38 retail stores of Surf, Dive 'n' Ski and Jetty Surf.
Outcome of assessment
Not opposed
Total review days *
20
Commenced public review
7th October 2010
Date completed
3rd November 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 surf lifestyle apparel, accessories and hardware in Sydney CBD, Melbourne CBD, Brookvale, Bondi Junction and Cairns; and
- National market for the wholesale supply of surf lifestyle 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 surf lifestyle apparel, accessories and hardware retailers in close proximity to Billabong/SDS stores in Sydney CBD, Melbourne CBD, Brookvale, Bondi Junction and Cairns;
-The availability of specialist independent retailers as alternate avenues for wholesale distribution by rival wholesalers; and
-The presence of alternate wholesalers of surf lifestyle apparel, accessories and hardware, including well-recognised brands, that would prevent any foreclosure of rival retailers' access to wholesale supply.
Accordingly, on 3 November 2010, the ACCC decided not to oppose the proposed acquisition.
Review timeline
Date
Event
7th October 2010
ACCC commenced review under the Merger Review Process Guidelines.
21st October 2010
Closing date for submissions from interested parties.
3rd November 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.
