Boral Limited - proposed acquisition of certain assets and operations of the Wagners Group

Acquirer(s)

  • Boral Limited

Target(s)

  • Wagners Group

Summary

Boral proposed to acquire a number of Wagners' quarry, concrete and related assets in the Darling Downs, South East Queensland and Townsville regions and several land parcels with future development potential.

The proposed acquisition does not include Boral acquiring Wagners' cement assets. However, as part of the proposed acquisition, Boral will enter into a long term Cement Supply Agreement with Wagners.

The proposed acquisition does not include Boral acquiring Wagners' interests in Independent Flyash Brokers Pty Ltd a supplier of flyash in South East Queensland. However, as part of the proposed acquisition, Boral will enter into a long term Flyash Supply Agreement with Independent Flyash Brokers.

Market definition

The ACCC considered the proposed acquisition in the context of the following markets:
- local and regional markets for the supply of pre-mixed concrete
- regional markets for the supply of quarry products
- a regional market for the supply of flyash in South East Queensland.

The ACCC also considered the proposed acquisition in the context of a market for the supply of cement however did not consider it necessary to form a definitive view regarding the market definition for this market.

Competition analysis

The ACCC considered that the proposed acquisition was unlikely to result in a substantial lessening of competition in any relevant market for the following reasons:

- the existence of a number of competing concrete suppliers in the relevant local and regional concrete markets
- the lack of geographic overlap between Boral and Wagners existing quarries.

Timeline

DateEvent
19/05/2011ACCC commenced review under the Merger Review Process Guidelines.
09/06/2011Closing date for submissions from interested parties.
24/06/2011ACCC requested further information from Boral. Former proposed decision date of 14 July 2011 delayed to allow provision of the information.
01/08/2011ACCC received further information from Boral. ACCC timeline recommenced.
12/08/2011ACCC requested further information from Boral. ACCC timeline suspended.
28/10/2011ACCC received further information from Boral. ACCC timeline recommenced.
08/11/2011ACCC announced it would not oppose the proposed acquisition.