Force Corp Pty Ltd - proposed acquisition of SA Access Equipment Pty Ltd

Acquirer(s)

  • Force Corp Pty Ltd

Target(s)

  • SA Access Equipment Pty Ltd

Summary

Force Corp Pty Ltd proposes to acquire SA Access Equipment Pty Ltd

Market definition

The proposed acquisition has been considered in the context of a South Australian market for access hire equipment, with local areas of close competition.

Competition analysis

The ACCC considers that the proposed acquisition is unlikely to substantially lessen competition as:

- the merged firm would face significant competition from existing players in the market, in particular Coates, as well as competition from other national suppliers of access hire equipment and regional suppliers; and

- the merged firm is likely to be constrained by the threat of new entry or expansion. Barriers include building a fleet of access equipment and branch representation. These barriers are unlikely to deter entry and expansion in the relevant market, in the event hire rates increased above competitive levels.

Timeline

DateEvent
25/05/2007ACCC commences review under Merger Review Process Guidelines
31/05/2007ACCC requested further information from Force Corp Pty Ltd. ACCC timeline suspended
06/06/2007ACCC received further information from Force Corp Pty Ltd. ACCC timeline recommenced
08/06/2007Closing date for submissions from interested parties
29/06/2007ACCC announced it would not oppose the proposed acquisition.