BAE Systems Australia Ltd - proposed acquisition of Tenix Pty Ltd

Market definition

The ACCC considered the proposed acquisition in relation to separate national markets for the acquisition of defence products and the sustainment of defence products in the following areas:

- Aerospace
- Marine
- Vehicles and Land
- Weapons and Munitions and
- Electronic Systems

The ACCC also considered the national market for the acquisition of base and garrison support services, as well as a secondary market for the provision of products and services by subcontractors to prime contractors.

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 as well as actual and potential import competition. The ACCC also considered that vertical and conglomerate issues are not likely to arise, as it is unlikely that the proposed acquisition will place the merged firm in an improved position to leverage its position across the relevant markets.