OJSC MMC Norilsk Nickel - proposed acquisition of LionOre Mining International Ltd

Acquirer(s)

  • OJSC MMC Norilsk Nickel

Target(s)

  • LionOre Mining International Ltd

Summary

OJSC MMC Norilsk Nickel proposes to acquire all of the issued and outstanding common shares of LionOre Mining International Limited.

Market definition

The proposed acquisition was considered in the context of the worldwide market for nickel production.

Competition analysis

On 23 May 2007, the ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant market. Factors informing this conclusion include:

- nickel is a globally traded commodity with the majority of nickel produced in Australian being exported;
- there would be significant potential import competition with Australian customers likely to be able to access imports in response to an increase in domestic prices;
- alternative suppliers including CRVD Inco, BHP Billiton, Jinchuan, Xstrata and Sumitomo would be readily accessible in the nickel market; and
- prices for nickel are referenced to international mediums such as the London Metal Exchange and so the merged firm would be unlikely to be able to significantly increase prices.

Timeline

DateEvent
07/05/2007ACCC commences informal review under the Merger Review Process Guidelines.
15/05/2007Closing date for submissions from interested parties.
23/05/2007ACCC announced it would not oppose the proposed acquisition