China Minmetals Non-ferrous Metals Company Limited - proposed acquisition of OZ Minerals Limited

Acquirer(s)

  • China Minmetals Non-ferrous Metals Company Limited

Target(s)

  • OZ Minerals Limited

Summary

China Minmetals Non-ferrous Metals Company Limited (China Minmetals) entered into an agreement with OZ Minerals Limited (OZ Minerals) whereby Minmetals would acquire all outstanding shares in OZ Minerals.

Market definition

The ACCC considered the effect of the proposed acquisition on national markets for the production and supply of zinc concentrate and copper concentrate.

Competition analysis

The ACCC considered that the proposed acquisition was unlikely to result in a substantial lessening of competition in the markets for the production and supply of either zinc concentrate or copper concentrate, for the following reasons:
- There were no areas of domestic competitive overlap between China Minmetals, or its related bodies corporate, and OZ Minerals that were considered to raise concerns.
- The zinc market is not particularly concentrated and there are a number of alternative suppliers of zinc concentrate. As such, it is unlikely that China Minmetals would be able to restrict the supply of zinc concentrate post acquisition.
- There are a number of other significant domestic producers of copper concentrate that would be likely to restrain China Minmetals from raising the price or reducing the supply of copper concentrate post acquisition.

Timeline

DateEvent
19/02/2009ACCC commenced review under the Merger Review Process Guidelines.
12/03/2009Closing date for submissions from interested parties.
20/03/2009ACCC announced it would not oppose the proposed acquisition.