GBC / Fordigraph Pty Ltd - proposed acquisition of Francotyp-Postalia Australia Pty Ltd and G.W. Enterprises (Australia) Pty Ltd

Market definition

The ACCC considered that the relevant markets for the purpose of assessing the proposed acquisition were the markets for:

(i) the supply (including distribution via agents) of postage meters; and

(ii) the supply (including distribution via agents) of mail folding/inserting machines.

Competition analysis

The ACCC considered that the proposed acquisition was unlikely to result in a substantial lessening of competition in a relevant market. The ACCC formed this view having regard to the following:

(i) The competitive constraint on the merged entity from other suppliers in the postage meter market, including Pitney Bowes, Swiss Mail and FP Mail, was likely to be sufficient to prevent any substantial lessening of competition in the market for postage meters as a result of the proposed acquisition. The number of competitors would not change as a result of the proposed acquisition, given that FP Mail had been appointed as the Australian distributor of Francotyp Postalia postage meters, which were previously distributed by the target.

(ii) The proposed acquisition was unlikely to substantially lessen competition in the mail folding/inserting machine market, given the very small increment of market share to GBC arising from the proposed acquisition, and the presence of a number of alternative competitors.