The Australian Competition and Consumer Commission will not intervene in the proposed acquisition by Bucyrus (Australia) Pty Limited of Marion Power Shovel Pty Limited.
"The proposed acquisition is part of a world-wide merger of their respective US parent companies, Bucyrus International Inc and The Marion Power Shovel Company," ACCC Chairman, Professor Allan Fels, said today.
The merger parties supply surface mining equipment to coal and iron ore miners for the removal of overburden. Overburden is the earth which covers the mineral being mined. Surface mining typically involves the removal of enormous volumes of overburden in order to reach the mineral.
Bucyrus Australia distributes electric draglines, electric mining shovels, rotary blast hole drills and spare parts in Australia on behalf of Bucyrus International Inc. Bucyrus International Inc manufactures electric draglines, electric mining shovels and rotary blast hole drills for use in the mining industry world-wide. Indeed, approximately 70 per cent of its sales are to international markets.
Marion Power Shovel Pty Limited tenders for new electric dragline and electric shovel sales, supplies spare parts and services Marion equipment in Australia on behalf of its US parent company.
"It appears that the merged firm will face competition from the world market leader, Harnischfeger of Australia Pty Limited, which will constrain it from exercising market power. Second-hand draglines are also available to be imported from the United States. Further, mining contractors are increasingly using electric shovels rather than draglines for overburden removal.
"The ACCC has therefore concluded that the proposed acquisition is unlikely to substantially lessen competition".
Further information Professor Allan Fels, Chairman, (06) 264 2829 or pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (06) 264 2808
"The proposed acquisition is part of a world-wide merger of their respective US parent companies, Bucyrus International Inc and The Marion Power Shovel Company," ACCC Chairman, Professor Allan Fels, said today.
The merger parties supply surface mining equipment to coal and iron ore miners for the removal of overburden. Overburden is the earth which covers the mineral being mined. Surface mining typically involves the removal of enormous volumes of overburden in order to reach the mineral.
Bucyrus Australia distributes electric draglines, electric mining shovels, rotary blast hole drills and spare parts in Australia on behalf of Bucyrus International Inc. Bucyrus International Inc manufactures electric draglines, electric mining shovels and rotary blast hole drills for use in the mining industry world-wide. Indeed, approximately 70 per cent of its sales are to international markets.
Marion Power Shovel Pty Limited tenders for new electric dragline and electric shovel sales, supplies spare parts and services Marion equipment in Australia on behalf of its US parent company.
"It appears that the merged firm will face competition from the world market leader, Harnischfeger of Australia Pty Limited, which will constrain it from exercising market power. Second-hand draglines are also available to be imported from the United States. Further, mining contractors are increasingly using electric shovels rather than draglines for overburden removal.
"The ACCC has therefore concluded that the proposed acquisition is unlikely to substantially lessen competition".
Further information Professor Allan Fels, Chairman, (06) 264 2829 or pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (06) 264 2808