Force Corp Pty Ltd - proposed acquisition of 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.