ACCC will not oppose Metal Manufacturers’ proposed acquisition of Cetnaj

2 June 2016

The Australian Competition and Consumer Commission will not oppose the proposed acquisition of Cetnaj Pty Ltd by Metal Manufacturers Limited (MML).

Cetnaj has 44 electrical distribution stores in Queensland, New South Wales and Victoria. Cetnaj and MML both supply lighting products to retail customers and lighting and electrical products to trade customers. The key areas of overlap are in the mid-north and northern regions of NSW. The ACCC consulted with many customers in these regional areas.

“We focused our investigation into this acquisition on Armidale, Moree and Grafton, where MML and Cetnaj operate the only electrical wholesale shops in each town. We also examined Taree, where there is only one other competitor,” ACCC Chairman Rod Sims said.

“Market feedback indicated that there is competition from electrical wholesalers in neighbouring areas, who actively market and supply into those towns.”

“In addition, the ACCC considered that other electrical wholesalers in regional NSW had the potential to expand into those towns if prices were to increase,” Mr Sims said.

Further information is available at http://registers.accc.gov.au/content/index.phtml/itemId/1196169/fromItemId/751046

Background

MML trades under the name MM Electrical Merchandising, supplying electrical and lighting products to trade and non-trade customers under the brands of Hymans Electrical, TLE Electrical, AWM Electrical, D&W Electrical and MM Electrical.

Cetnaj sells electrical, lighting and related products. Cetnaj also designs and supplies data infrastructure, lighting systems, master antenna television systems and solar panels.

MML intends to acquire the business and assets of Cetnaj and a number of its related bodies corporate, which own and operate 44 electrical wholesale and retail lighting stores under the name Cetnaj.

 

Release number: 
MR 93/16
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