- chloroprene rubber business of E.I. du Pont de Nemours and Company
SummaryDenka Performance Elastomer LLC, a joint venture being formed between Denki Kagaku Kogyo Kabushiki Kaisha and Mitsui & Co Ltd, proposes to acquire the chloroprene rubber business of E.I. du Pont de Nemours and Co.
Market definitionThe ACCC considered the impact of the proposed acquisition on the supply of chloroprene rubber in Australia.
While chloroprene rubber is a globally traded product and all chloroprene rubber used in Australia is imported, the ACCC's review focussed on the impact on Australian customers.
Competition analysisThe ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in the relevant market. Factors informing this conclusion included the following:
- Denki Kagaku Kogyo Kabushiki Kaisha (also known as Denka) would continue to face competition from several other established producers of chloroprene rubber currently supplying Australian customers.
- Barriers to other existing international competitors increasing sales to Australia are low.
- Many of the larger Australian customers have the option of purchasing chloroprene rubber at prices negotiated on a global basis by their international affiliates.
|28/01/2015||ACCC commenced review under the Merger Process Guidelines.|
|11/02/2015||ACCC requested further information from the merger parties.|
|18/02/2015||ACCC received further information from the merger parties.|
|19/02/2015||Closing date for submissions from interested parties.|
|17/03/2015||The ACCC amended the former provisional decision date of 26 March for announcement of findings.|
|23/03/2015||ACCC announced it would not oppose the proposed acquisition.|