Acquirer: Brickworks Ltd; Target: Bristile Ltd

Summary

The proposed acquisition of Bristile Ltd by Brickworks Ltd

Market definition

The relevant markets were considered to be the state markets for the manufacture and supply of clay bricks and pavers.

Competition analysis

Bristile and Brickworks both supply bricks and pavers, but mainly do so in separate state markets.

The Commission concluded that the proposed acquisition was unlikely to lead to a substantial lessening of competition in the relevant markets for the following reasons:
(i) the absence of any significant overlap between the parties in each of the state-based markets
(ii) barriers to entry appear to be low
(iii) customers appear to be able to exercise a significant degree of countervailing power.

Accordingly, the Commission concldued that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets and decided not to oppose.

Merger type

Horizontal

Guidelines thresholds

Below

Imports above 10%

No

Initiation

Parties

ANZSIC code

2621