AB Volvo - proposed acquisition of Nissan Diesel Motor Co. Ltd

Summary

AB Volvo proposes to acquire 100% of the shares of Nissan Diesel Motor Company Limited

Market definition

The ACCC formed the view that market definition was not conclusive to the decision but proceeded on the basis of the relevant market being the Australian market for the manufacture, assembly and distribution of commercial trucks.

Competition analysis

On 3 April 2007, the ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant market. Factors informing this conclusion included:

- post-acquisition there would remain a large number of competitors in the market which would constrain the prices of the merged firm;
- there would be a large number of imports (which may be assembled in Australia) which would be readily able to increase in response to increased demand;
- there is significant countervailing power by some consumers; and
- the market is a growing and innovative market in which it appears that growth is sustainable.