Acquirer: OPSM Group Ltd; Target: Kays Optical Pty Ltd

Summary

OPSM Protector Limited's proposed acquisition of Kays Optical Limited

Market definition

The relevant market was the national market for optical dispensing.

Competition analysis

The Commission considered that the proposed acquisition would not substantially lessen competition in the relevant market because of the following factors:

- the proposed acquisition did not exceed Merger Guideline thresholds ;

- the low barriers to entry or expansion that would be faced by optical dispensers seeking to constrain any price increases by the merged entity ;

- examples of effective entry in the past and possible new entry by health funds ;

- close and vigorous competition from independent optometrists and retail optical dispensers at the local level of competition that will remain post acquisition ; and

- countervailing power in the hands of health funds arising from preferred provider arrangements with national and regional optical chains.

Merger type

Horizontal

Guidelines thresholds

Below

Imports above 10%

No

Initiation

Parties

ANZSIC code

8632