ACCC to allow Chubb's acquisition of M.S.S.

18 June 1996
The Australian Competition and Consumer Commission has decided not to oppose the recent acquisition by Chubb Security Holdings Limited of MSS Security, ACCC Chairman, Professor Allan Fels, announced today.

"After considering the information provided by the parties and other market participants the Commission is of the opinion that the acquisition is unlikely to have the effect of substantially lessening competition in the market for security services", Professor Fels said.

"The security services considered by the ACCC with respect to the acquisition included: electronic security installation and service; monitoring; patrol and guarding services, in all States and Territories.

"One criteria in the ACCC's assessment of the likely effect of the acquisition on competition is the degree of concentration in the market. South Australia was the only State where concentration levels were found to reach the Commission's threshold levels under the merger guidelines.

"The main reason for the ACCC's decision is that barriers to entry were relatively low in all States and Territories in terms of the capital costs required to set up a security business.

"However, the Commission did consider that potential customers may not be aware as to the common ownership of the various security businesses. Accordingly, the Commission has requested that Chubb, Wormald Security Australia Pty Limited, James Hardie Limited and MSS inform all potential clients that these four entities are part of the Chubb Group.

"The Commission will continue to monitor the security industry with particular attention given to South Australia."
Release number: 
MR 081/96
ACCC Infocentre: 

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