Acquirer: Cootes Holdings Pty Limited; Target: Stevenson Transport Pty Limited

Summary

Cootes Holdings Limited (wholly owned subsidiary of ION Limited) proposes to acquire the whole of the issued share capital in Stevenson Transport Pty Limited. The main area of overlap is in the transport of LPG and bitumen by road.

Market definition

For the purposes of this competition assessment, the relevant markets were found to be the national markets for the road transportation of
1. bulk liquid petroleum gas; and
2. bitumen.

Competition analysis

The Commission noted that the Commission's thresholds for the exercise of unilateral and combined market power are crossed in both markets. However, the Commission considered that the merged entity will be constrained from raising prices and profit margins by:
- relatively low barriers to entry - there appears to be potential for new entry and/or expansion of current competitors; and
- countervailing power of customers.

In these circumstances the Commission found that no substantial lessening of competition was likely.

Merger type

Horizontal

Guidelines thresholds

Crossed

Imports above 10%

N/A

Initiation

Parties

ANZSIC code

6110