Acquirer: Pioneer Construction Materials Pty Ltd; Target: Western Suburbs Concrete (Partnership)

Acquirer(s)

  • Pioneer Construction Materials Pty Ltd

Target(s)

  • Western Suburbs Concrete (Partnership)

Summary

The proposed tolling arrangement between Pioneer Construction Materials Pty Ltd and Western Suburbs Concrete Partnership. Pioneer propose to close their Penrith plant and purchase concrete from the Western Suburbs plant.

Market definition

The pre-mixed concrete market in the Penrith area

Competition analysis

Pioneer Construction Materials Pty Ltd propose to enter into a tolling arrangement with Western Suburbs Concrete Partnership at Penrith. They intend to close their Penrith plant and purchase concrete from the Western Suburbs plant.

Hanson has a 100% interest in Pioneer and a 50% interest in Western Suburbs.

The relevant market is for pre-mixed concrete in the Penrith region. Western Suburbs is a small player in this market. Market inquiries indicated that there were low barriers to entry at small scale in this market.

Guidelines thresholds

Unknown

Imports above 10%

Unknown