The Australian Competition and Consumer Commission will not intervene in Basell Australia Pty Ltd's proposed acquisition of the polypropylene business of Qenos Pty Ltd, ACCC Chairman, Mr Graeme Samuel, said today.
The acquisition will lead to only one Australian polypropylene producer. The level of imported polypropylene has however been more than 10 per cent for the past four years, and there was evidence from a significant number of market participants that the viability of imports was likely to constrain the pricing decisions of the merged entity.
On the basis of these factors the ACCC determined that a substantial lessening of competition in the Australian market for polypropylene was not likely.
A statement of reasons for the decision will be published on the ACCC website shortly.