CSR Building Products Limited - proposed acquisition of Burnbridge Glass Pty Ltd

Acquirer(s)

  • CSR Building Products Limited

Target(s)

  • Burnbridge Glass Pty Ltd

Summary

CSR Limited proposed to acquire Burnbridge Glass Pty Ltd.

Market definition

The ACCC considered the competitive effects of the proposed acquisition in the context of a market for the manufacture and supply of processed glass products. While the ACCC did not form a concluded view in relation to the relevant geographic scope of this market, it considered the likely impact of the proposed acquisition in the greater Sydney and central NSW coast region (including the areas of Newcastle, the NSW Central Coast and Port Macquarie).

Competition analysis

The ACCC concluded that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant market. In forming this view the ACCC had regard to the following factors:
- that post acquisition, a number of other substantial manufacturers of processed glass will remain in the relevant market (including several existing and potential suppliers from outside of Newcastle), thereby constraining the merged entity's ability to increase product prices or reduce service quality; and
- that barriers to entry do not appear to be high.

Timeline

DateEvent
30/05/2011ACCC commenced review under the Merger Review Process Guidelines.
15/06/2011Closing date for submissions from interested parties.
28/06/2011ACCC announced it would not oppose the proposed acquisition.