Hoyts Corporation Pty Ltd - completed acquisition of Australian Multiplex Cinemas Pty Limited
Type of assessment
Informal Review
Reference
43694
Acquirer(s)
Hoyts Corporation Pty Ltd
Target(s)
Australian Multiplex Cinemas Pty Limited
Industry
Cinema
Summary
Hoyts Corporation Pty Ltd (Hoyts) has acquired Australian Multiplex Cinemas Pty Ltd (AMC).
Outcome of assessment
Not opposed
Total review days *
25
Commenced public review
21st October 2010
Date completed
24th November 2010
Market definition
The ACCC considered the competitive effects of the acquisition in the context of the following markets:
- local markets for the exhibition of films in a cinema;
- local and national markets for the exhibition of cinema advertising; and
- a national market for the acquisition of film product from film distributors for exhibition in a cinema.
Competition analysis
The ACCC formed the view that the acquisition was unlikely to substantially lessen competition for the following reasons:
- the absence of an overlap between the customer catchment area of each of the target cinemas in Queensland and Far North New South Wales and the acquirer's nearest cinemas;
- the limited overlap between the customer catchment area of the target cinema in Victoria and the acquirer's nearest cinema as well as the likely constraint provided by competing cinemas in the target cinema's customer catchment area in Victoria;
- the small incremental increase in total advertising exhibited by Hoyts in Australia as a result of the acquisition; and
- the small incremental increase in Hoyts' acquisition of film product from film distributors in Australia as a result of the acquisition.
Review timeline
Date
Event
21st October 2010
ACCC commenced review under the Merger Review Process Guidelines.
8th November 2010
Closing date for submissions from interested parties.
18th November 2010
Hoyts acquired AMC.
24th November 2010
ACCC announced it would not oppose the completed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
