- R&E Autos Pty Ltd
SummaryExego Pty Ltd proposed to acquire 100% of the share capital in R&E Autos Pty Ltd
Market definitionThe ACCC primarily considered the effects of the proposed acquisition in the context of markets for the supply of automotive parts and accessories to trade customers in the:
- Greater Melbourne region;
- south-east Melbourne region; and
- south-east Victoria / Princes Highway region.
Competition analysisThe ACCC concluded that the proposed acquisition was unlikely to substantially lessen competition in any relevant market, since:
- although GPC's subsidiary, Repco, and R&E offered a similar range of automotive parts and accessories, they did not appear to be close competitors (primarily because of R&E's focus on the trade channel);
- remaining competitors (including national chains such as Burson Automotive, regional and single store outlets, specialist / niche suppliers and, to a lesser extent, original equipment suppliers) would exert an effective competitive constraint on the merged firm;
- trade customers could easily switch suppliers and also appeared to possess a degree of countervailing power, through their ability to bypass the merged firm by sourcing products online and/or from buying groups such as the Capricorn Society; and
- in the context of this review, barriers to entry and expansion on a local or regional scale were not significant.
|02/07/2013||ACCC commenced review under the Merger Process Guidelines.|
|17/07/2013||Closing date for submissions from interested parties.|
|07/08/2013||ACCC announced it would not oppose the proposed acquisition.|