Preformed Line Products Australia Pty Ltd - proposed acquisition of Dulmison, a business unit of Tyco Electronics

Summary

Preformed Line Products Australia Pty Ltd proposed to acquire Dulmison, a business unit of Tyco Electronics.

Market definition

The ACCC noted that PLP and Dulmison overlapped in relation to the manufacture and supply of:
- transmission and distribution equipment (T&D equipment) to the power industry;
- cable fittings to the communications industry; and
- fittings to the rail industry.

The ACCC formed the view that there was minimal overlap between the merger parties in relation to the supply of cable fittings to the communications industry and fittings to the rail industry.

The ACCC considered that the primary product area affected by the proposed acquisition was in relation to the manufacture and supply of T&D equipment to the power industry. Specifically, the ACCC considered the proposed acquisition in the context of the supply of overhead line hardware and fittings.

For the purposes of its competition analysis the ACCC did not consider it necessary to form a definitive view regarding market definition.

Competition analysis

The ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the market for the supply of overhead line hardware and fittings. Factors informing this conclusion included the:
- existence of other competitors in the market for the supply of overhead line hardware and fittings;
- presence of actual and potential competition from importers which is likely to constrain the merged entity; and
- absence of substantial barriers to entry or expansion.