Wilmar International Limited - proposed acquisition of Sucrogen Limited

Summary

Market definition

The ACCC considered the competition effects of the proposed acquisition in the context of:
i) the market for the acquisition of cane and supply of milling services to growers;
ii) the market for the acquisition of sugar export and marketing services; and
iii) the market for the acquisition of bulk storage and handling services for raw sugar.

However, for the purposes of the competition analysis, the ACCC did not consider it necessary to form a definitive view regarding market definition.

Competition analysis

Given the limited competitive overlap between Wilmar and Sucrogen, the ACCC formed the view that the proposed acquisition was unlikely to result in a change in the structure of the relevant markets. The ACCC's analysis took into account the likely counterfactual and, in particular, whether Sucrogen under the ownership of Wilmar was likely to have different incentives compared to Sucrogen's current owners and whether this would be likely to affect competition in the relevant markets. The ACCC concluded that Sucrogen was unlikely to have different incentives under the ownership of Wilmar and that the proposed acquisition was unlikely to result in a substantial lessening of competition.