Acquirer(s)
- Xstrata Coal Pty Ltd
Target(s)
- Gloucester Coal Ltd
Summary
Xstrata coal proposes to acquire Gloucester Coal Limited.Market definition
The proposed acquisition was considered in the context of the markets for thermal and metallurgical coal production.Competition analysis
The ACCC considered that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets.Factors informing this conclusion included:
- Gloucester's coal production represents a small proportion of overall Australian production. The acquisition would result in a marginal increase in Xstrata's market shares.
- Both parties export a vast majority of their coal.
- There are alternative suppliers, including Rio Tinto and BHP Billiton.
Timeline
| Date | Event |
|---|---|
ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced |
|
ACCC announced it would not oppose the proposed acquisition |