CPI Group Limited - proposed acquisition of Detagna Pty Ltd trading as Red Paper Group

Acquirer(s)

  • CPI Group Limited

Target(s)

  • Detagana Pty Ltd trading as Red Paper Group

Summary

CPI Group Limited proposes to purchase the business and net tangible assets of Detagana Pty Limited which in Australia trades as Red Paper Group

Market definition

The proposed acquisition was considered in the context of the national market for the supply of fine and copy paper by merchants (distributors).

Competition analysis

The ACCC considered that the proposed acquisition was unlikely to substantially lessen competition in the national market for the supply of fine and copy paper by merchants because of the following factors:
- the ability of customers to switch to alternative fine and copy paper merchants; and
- smaller fine and copy paper merchants appear likely to act as effective competitive constraint on the merged entity due to the relatively low barriers to expansion in the relevant market.

Timeline

DateEvent
10/10/2007ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced.
24/10/2007Closing date for submissions from interested parties.
29/10/2007ACCC requested further information from CPI. ACCC timeline suspended.
09/11/2007ACCC received further information from CPI. ACCC timeline recommenced.
20/11/2007ACCC announced it would not oppose the proposed acquisition.