- Gunns Limited's wood chip export facilities at the port of Portland
SummaryGlobal Forest Partners LP (GFP) proposed to acquire Gunns Limited's (Gunns) hardwood and softwood wood chip processing and export facilities at the port of Portland. GFP, via its subsidiaries, managed a hardwood and a softwood estate in the Green Triangle region (plantations located throughout south-east South Australia and south-west Victoria).
Market definitionThe ACCC considered the proposed acquisition in the following relevant markets:
- the market for the supply of hardwood wood chip processing and export services at the port of Portland; and
- the market for the supply of softwood wood chip processing and export services at the port of Portland.
Competition analysisThe ACCC concluded that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets for the following reasons:
- the proposed acquisition will not materially impact the structure of the relevant markets as Gunns is presently vertically integrated having plantation assets and processing and export facilities at the port of Portland. GFP will replace Gunns as another vertically integrated operator of processing and export facilities at the port;
- the alternative suppliers of hardwood and softwood wood chip processing and export services at the port of Portland are likely to act as a competitive constraint on GFP; and
- GFP is unlikely to have the incentive to foreclose upstream competitors by withholding third party access to its facilities due to overriding incentives to maximise throughput at its export facility and to encourage plantation reinvestment in the Green Triangle region.
|07/06/2012||ACCC commenced review under the Merger Review Process Guidelines.|
|25/06/2012||Closing date for submissions from interested parties.|
|05/07/2012||ACCC announced it would not oppose the proposed acquisition.|