CA Group Australasia Pty Ltd - proposed acquisition of Global Alloys

Acquirer(s)

  • CA Group Australasia Pty Ltd

Target(s)

  • Global Alloys

Summary

CA Group Australasia Pty Ltd (CA Group) proposes to acquire the Global Alloys business from Casting Components & Alloys Pty Ltd.

Market definition

The ACCC considered the proposed acquisition in the context of the following markets:
- a national market for the manufacture and supply of cast non-ferrous metal products; and
- a national market for the manufacture and supply of extruded non-ferrous metal products.

Competition analysis

The ACCC concluded that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets. In forming this view the ACCC considered that the following factors were likely to constrain the merged entity:
- the continued presence of a number of competitors;
- sufficiently low barriers to entry and expansion, which would enable some competitors to modify their manufacturing activities to compete with the merged entity; and
- the availability of imports for some customers.

Timeline

DateEvent
23/12/2010ACCC commenced review under the Merger Review Process Guidelines.
21/01/2011Closing date for submissions from interested parties.
11/02/2011ACCC announced it would not oppose the proposed acquisition.