Acquirer: Magnadata International Limited; Target: Spectron Transit Tickets Pty Ltd

Summary

MIL, through its subsidiary, Magnadata Pty Limited ("Magnadata") proposes to acquire the magnetic stripe ticketing division of Spectron Transit Tickets Pty Limited ("Spectron").

Market definition

For competition analysis purposes the relevant market was taken to be the national market for the manufacture and supply of magnetic stripe ticketing.

Competition analysis

The Commission was of the view that the acquisition was unlikely to substantially lessen competition in the market for the following reasons:
- there appear to be several competitors capable of constraining the merged firm;
- this acquisition does not breach the Commission's market concentration threshholds;
- imports appear to be a viable source of current and potential competition. Independent imports represent 14 per cent of the market;
- purchasers appear to have some degree of countervailing power in their ability to purchase imports; and
- technological developments such as the increasing use of smart cards provide a competitive constraint on the merged firm.

Merger type

Horizontal

Guidelines thresholds

Below

Imports above 10%

Yes

Initiation

Parties

ANZSIC code

2412