SummaryH&R GSP Pty Ltd - proposed acquisition of Bentley Chemplax Pty Ltd
Market definitionFor the purposes of competition analysis the relevant markets were considered to be the national markets for saturating wax (for cardboard boxes) and wax emulsions (for building products).
Competition analysisThe merged entity will have very high market shares in both markets. However, market inquiries revealed that Bentley has lost considerable market share over recent years, and is widely expected to continue to decline in the absence of a merger. Market inquiries also confirmed that some customers are able to exercise countervailing power against the merged firm, illustrated by the fact that one firm has bypassed the market and now produces its own saturating wax. The threat of new entry and expansion by competitors will act as a constraint on the merged entity, as will the willingness and ability of many customers to import these products in the event of any attempt to increase prices.
In these circumstances, the ACCC formed the view that no substantial lessening of competition is likely.