Ecolab Pty Ltd - proposed acquisition of Cleantec business of Campbell Brothers Ltd
Type of assessment
Informal Review
Reference
43006
Acquirer(s)
Ecolab Pty Ltd
Target(s)
Cleantec business of Campbell Brothers Ltd
Industry
Commercial cleaning products
Outcome of assessment
Not opposed
Total review days *
35
Commenced public review
29th September 2010
Date completed
17th November 2010
Market definition
The ACCC considered the proposed acquisition in the context of the national market for the supply of commercial cleaning products and ancillary services.
Competition analysis
Although the proposed acquisition would result in a more highly concentrated market, the ACCC considered that the proposed acquisition was unlikely to result in a substantial lessening of competition due to:
- the number of alternative competitors remaining post-acquisition for customers not requiring high-frequency service;
- remaining firms, particularly Jasol and Diversey, that are likely to constrain the merged firm in tenders for high-volume customers requiring specialised services as well for as for low-volume customers;
- barriers to expansion not being prohibitive despite finding that sunk costs and long term contracts may deter a large-scaled and timely entry; and
- some large-volume customers having some degree of countervailing power.
Review timeline
Date
Event
29th September 2010
ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced.
15th October 2010
Closing date for submissions from interested parties.
25th October 2010
ACCC requested further information from Ecolab.
2nd November 2010
Former proposed date for announcement of ACCC's findings of 11 November 2010 amended to allow time for Ecolab to respond to the ACCC's information request of 25 October 2010, and for the ACCC to consider Ecolab's response.
17th 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.
