MaxiTRANS Industries Limited - acquisition of Peki Transport Equipment Pty Limited

Summary

MaxiTRANS Industries Limited - acquisition of Peki Transport Equipment Pty Limited

Market definition

The national market for the supply of refrigerated or insulated solid-walled freight vehicle trailers and the national market for the supply of body panels for freight vehicles and trailers.

Competition analysis

On 29 November 2005, the ACCC decided that MaxiTRANS Industries Limited appears unlikely to be able to achieve a sustained increase in prices or profit margins as a result of its acquisition of Peki Transport Equipment Pty Limited due to relatively low barriers to entry and the ability and incentive of customers to sponsor new entry and expansion by existing trailer manufacturers. Other trailer manufacturers do not appear to face high sunk costs, technical manufacturing obstacles or other barriers to the supply of solid-walled refrigerated trailers.

The Acquisition does not appear to raise competition concerns in the national market for the supply of body panels for freight vehicles and trailers due to the presence of imports and the ease with which customers appear able to vertically integrate if MaxiTRANS raised its prices.

Merger type

Horizontal

Initiation

Parties