Orica Australia Pty Limited - proposed acquisition of chemicals business of Aluminates Chemical Industries Group

Summary

Orica Australia Pty Limited - proposed acquisition of chemicals business of Aluminates Chemical Industries Group

Market definition

regional markets based around state boundaries for the supply of
1. alum; and
2. sulphuric acid

Competition analysis

Although the merged entity has high market shares in each of the relevant markets, Aluminates operates in complementary markets to Orica and is not a
vigorous and effective competitor to Orica in any of the relevant markets. It will continue to face competition from a number of rival chemical producers.

Further, there appear to be relatively low barriers to entry to the relevant liquid alum and sulphuric acid markets.

On this basis the ACCC concluded that the proposed transaction is unlikely to result in a substantial lessening of competition.

Merger type

Horizontal

Initiation

Parties