adidas-Salomon AG - proposed acquisition of Reebok International Ltd


adidas-Salomon AG is the second largest sporting goods company in the world. In Australia, adidas supplies footwear and apparel and golf-related goods through its brand TaylorMade. Reebok International Ltd is a worldwide designer, marketer and distributor of sporting and related products. Like adidas, Reebok supplies footwear and apparel as well as a range of fitness equipment in Australia.

Market definition

For the purposes of a competition assessment in Australia, the ACCC considered the impact of the acquisition on the national markets for athletic footwear and apparel.

Competition analysis

The ACCC formed the view that the proposed acquisition is not likely to result in a substantial lessening of competition in the relevant markets. In making its decision, the ACCC considered that the merged entity was likely to continue to be constrained by the existence of a number of large competitors, significant import competition, relatively low barriers to entry and a number of retailers who are likely to be able to exercise countervailing power.