CSR Limited - acquisition of Karreman Roof Tiles

Summary

On 1 February 2005, CSR Limited acquired Karreman Roof Tiles. CSR and Karreman's operations overlapped in respect of the manufacture and supply of concrete roof tiles in Queensland and the supply of concrete roof tiles in New South Wales.

Market definition

The Commission considered the markets relevant to its assessment as the market for roof tiles in Queensland and the market for roof tiles in New South Wales.

Competition analysis

While the acquisition by CSR of Karreman breached the Commission's concentration thresholds in the relevant markets, the Commission considered that the acquisition would not result in a substantial lessening of competition. In respect of the market for roof tiles in New South Wales, there was limited overlap in the operations of CSR and Karreman. The Commission considered that CSR would continue to be constrained in Queensland by its two main rivals, Boral and Brickworks. Furthermore, the Commission noted that market inquiries indicated that Karreman was not considered to be a significant player in the relevant markets, nor was it considered to be a driver of competition in the markets. Accordingly, the Commission did not oppose the acquisition.

Initiation

Parties