Invista B V - proposed acquisition of a carpet fibre plant owned by Honeywell Specialty Materials (China) Ltd

Acquirer(s)

  • Invista B V

Target(s)

  • Carpet fibre plant owned by Honeywell Specialty Materials (China) Ltd

Summary

Invista B.V. proposes to acquire a nylon fibre plant in Shanghai, China, from Honeywell Specialty Materials (China) Co. Ltd, which is used by Honeywell to supply its Australian customers.

Market definition

1) The national market for carpet manufacturing and supply; and

2) The national market for the supply of carpet fibre to manufacturers.

Competition analysis

In relation to both markets, the ACCC formed the view that there are relatively high levels of imports at an input and end product level, which are likely to act as a strong competitive constraint.

After consideration of the information provided by market participants and other information before it, the ACCC formed the view that the recent and proposed acquisitions in the two markets listed above are unlikely to result in a substantial lessening of competition, and decided that it would not oppose the proposed acquisition.

Timeline

DateEvent
01/11/2006ACCC commences review under the Merger Review Process Guidelines
15/11/2006Closing date for submissions from interested parties
21/11/2006ACCC announced it would not oppose the proposed acquisition