Codan Ltd - acquisition of Minelab Electronics Pty Ltd

Summary

Codan Limited acquired all shares and options in Minelab Electronics Pty Limited

Market definition

The ACCC considered the acquisition in the context of the national market for each of the following:

- the supply of countermine products;
- the supply of communication products (High Frequency (HF) radio, satellite and digital microwave radio); and
- the supply of printed circuit boards (for use in printed circuit assemblies).

Competition analysis

On 3 March 2008, the ACCC formed the view that the acquisition would be unlikely to result in a substantial lessening of competition in each of the relevant markets. Factors informing this conclusion included the following:

- in relation to countermine products and communication products; the acquisition is a bare transfer of market share. The ability for the merged entity to bundle or leverage its products is likely to be minimal with a number of alternate suppliers and potential import competition in each market acting as a competitive restraint; and
- in relation to printed circuit boards; the large number of alternate suppliers and high level of import competition.