- Frimokar (Aust) Pty Ltd
SummaryFRH Group proposes to acquire the assets of Frimokar that are used to retexturise and clean road surfaces using high pressure water sprays.
Market definitionThis proposed acquisition was assessed within the context of the market for road and runway cleaning and re-texturising using high pressure water sprays. The ACCC's conclusion would have been unchanged if a broader market were adopted. The geographic market is unclear but is likely to be at least the east coast of Australia.
Competition analysisOn 8 August 2007, the ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant market. Factors informing this conclusion included:
-the likelihood that FRH would continue to be constrained by current and potential new entrants, due to relatively low barriers to entry; and
-FRH's and Frimokar's customers run sophisticated tender processes through which they can facilitate new entry in the event of any attempt by the merged entity to increase prices.
|16/07/2007||ACCC commenced review under the Merger Review Process Guidelines.|
|03/08/2007||Closing date for submissions from interested parties.|
|08/08/2007||ACCC announced it would not oppose the proposed acquisition.|