The Australian Competition and Consumer Commission will not oppose the proposed acquisition of Edwards Hot Water Pty Ltd by Rheem Australia Pty Ltd, ACCC Chairman, Mr Graeme Samuel, said today.
Rheem and Edwards both manufacture water heaters (hot water systems). Rheem is the largest manufacturer of water heaters in Australia and manufactures most types of water heater. Edwards is a Perth-based company that also manufactures a range of water heaters. Edwards is the second largest manufacturer of solar water heaters in Australia.
"Following inquiries with market participants, the ACCC considers that other manufacturers of water heaters will be likely to place competitive pressure on Rheem in the future for all types of water heater", Mr Samuel said.
"Although Rheem will have a high percentage of solar water heater sales in Australia, the ACCC considers that at this stage there are no significant barriers to prevent other water heater manufacturers from increasing their output of solar water heaters.
“The ACCC took into consideration the ability of water heater manufacturers to import many of the components necessary for manufacturing solar water heaters.
“The ACCC noted environmental and planning regulations and likely regulatory changes in the future. The ACCC also noted preferences some consumers have for certain types of water heater".