Coates Hire Operations Pty Limited - proposed acquisition of assets from Monash Hire Group Pty Ltd

Summary

Coates Hire Operations Pty Limited proposed to acquire assets from Monash Hire Group Pty Ltd.

Market definition

While the ACCC did not reach a definitive view of the relevant market it considered the proposed acquisition in the context of the following markets, noting that the adoption of broader geographic markets would not have altered the competition analysis:
- the local Melbourne market for the supply of access hire equipment;
- the local Melbourne market for the supply of general hire equipment; and
- the local Mackay market for the supply of access hire equipment.

Competition analysis

The ACCC considered that the proposed acquisition was unlikely to substantially lessen competition in any relevant market as:
- in each of the relevant markets, the merged firm would face significant competition from alternative suppliers of access hire equipment and general hire equipment; and
- barriers to entry and expansion were not considered to be high and therefore the threat of entry/expansion would be expected to constrain any attempt by the merged firm to raise hire rates above competitive levels.