The Australian Competition and Consumer Commission notes that Adelaide Brighton Limited (ABL) has today publicly announced a major restructuring of ABL in which The Rugby Group PLC will acquire a controlling interest in ABL.
"The proposed restructuring is an important proposal for the cement industry. It will be necessary for the ACCC to examine closely any issues that might arise under the Trade Practices Act 1974 from the deal," ACCC Chairman, Professor Allan Fels, said.
"The ACCC has had contact with the parties in relation to the proposed acquisitions, but the ACCC's inquiries have been constrained by confidentiality requirements imposed by the parties.
"On the basis of the limited inquiries the ACCC has been able to undertake so far, the ACCC advised the parties that the proposed acquisitions may raise competition issues especially in the Western Australian market.
"The ACCC understands that the parties are intending to lodge an authorisation application in respect of the restructuring".
Authorisation is a process whereby the ACCC, in response to an application, has the power to grant immunity from court action for arrangements or conduct that might otherwise be in breach of the Trade Practices Act. To grant authorisation the ACCC must be satisfied the public benefit stemming from the arrangements or conduct outweighs any anti-competitive effect.
"The proposed restructuring is an important proposal for the cement industry. It will be necessary for the ACCC to examine closely any issues that might arise under the Trade Practices Act 1974 from the deal," ACCC Chairman, Professor Allan Fels, said.
"The ACCC has had contact with the parties in relation to the proposed acquisitions, but the ACCC's inquiries have been constrained by confidentiality requirements imposed by the parties.
"On the basis of the limited inquiries the ACCC has been able to undertake so far, the ACCC advised the parties that the proposed acquisitions may raise competition issues especially in the Western Australian market.
"The ACCC understands that the parties are intending to lodge an authorisation application in respect of the restructuring".
Authorisation is a process whereby the ACCC, in response to an application, has the power to grant immunity from court action for arrangements or conduct that might otherwise be in breach of the Trade Practices Act. To grant authorisation the ACCC must be satisfied the public benefit stemming from the arrangements or conduct outweighs any anti-competitive effect.