Dnata - proposed acquisition of Broadlex Air Services Pty Ltd

Acquirer(s)

  • Dnata

Target(s)

  • Broadlex Air Services Pty Ltd

Summary

dnata, which forms part of the Emirates Group, proposed to acquire the aircraft cabin cleaning business of Broadlex Air Services Pty Ltd.

Market definition

The ACCC considered the proposed acquisition in the context of separate markets for the supply of aircraft cabin cleaning services in Sydney, Melbourne and Brisbane.

Competition analysis

The ACCC concluded that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets given the lack of overlap between the operations of the merger parties. Additionally, the ACCC did not consider that barriers to entry were substantial for the supply of aircraft cabin cleaning services such that the merged entity would likely be able to successfully foreclose the supply of cabin cleaning services to rival airline operators.

Timeline

DateEvent
06/03/2013ACCC commenced review under the Merger Review Process Guidelines.
21/03/2013Closing date for submissions from interested parties.
10/04/2013ACCC announced it would not oppose the proposed acquisition.