Sims Metal Management Ltd - proposed acquisition of Commercial Metal Recycling Services Pty Ltd
Type of assessment
Informal Review
Reference
43914
Acquirer(s)
Sims Metal Management Ltd
Target(s)
Commercial Metal Recycling Services Pty Ltd
Industry
Metal recycling
Summary
Sims Metal Management Ltd proposed to acquire Commercial Metal Recycling Services Pty Ltd.
Outcome of assessment
Not opposed
Total review days *
33
Commenced public review
29th October 2010
Date completed
14th December 2010
Market definition
The ACCC considered the proposed merger within the context of:
- regional markets for the acquisition of ferrous scrap from scrap originators, scrap collectors and scrap dealers in Queensland;
- regional markets for the acquisition of non-ferrous scrap from scrap originators, scrap collectors and scrap dealers in Queensland;
-the markets for the supply of ferrous scrap metal to end users such as metal manufacturers, smelters and foundries in Queensland; and
-the market for the supply of non-ferrous scrap metal to end users such as metal manufacturers, smelters and foundries Australia.
For the purposes of the competition analysis, the ACCC did not consider it necessary to form a definitive view regarding market definition.
Competition analysis
The ACCC considered that the proposed merger was unlikely to result in a substantial lessening of competition in the relevant markets. Key factors informing this conclusion included:
- In relation to both ferrous and non-ferrous scrap, there would remain a number of scrap dealers post acquisition that would compete to acquire scrap; and
- In relation to both ferrous and non-ferrous scrap, there would remain a number of scrap dealers post acquisition that would compete to supply scrap.
Review timeline
Date
Event
29th October 2010
ACCC commenced review under the Merger Review Process Guidelines.
19th November 2010
Closing date for submissions from interested parties.
14th December 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.
