BAE Systems Australia Ltd - proposed acquisition of a further 50% interest in TenixToll Defence Logistics

Acquirer(s)

  • BAE Systems Australia Ltd

Target(s)

  • TenixToll Defence Logistics

Summary

BAE Systems proposes to acquire the remaining 50% share in the TenixToll joint venture. The proposed acquisition would lead to BAE holding 100% of the shares in TenixToll.

Market definition

The ACCC considered the proposed acquisition in relation to separate national markets for the sustainment of defence vehicles and land products and for the acquisition of base and garrison support services.

Competition analysis

The ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. In reaching this view, the ACCC considered that the merged firm's pricing decisions are likely to be constrained by the presence of existing competitors.

Timeline

DateEvent
27/11/2008ACCC commenced review under the Merger Review Process Guidelines.
04/12/2008Closing date for submissions from interested parties.
17/12/2008ACCC announced it would not oppose the proposed acquisition.