SummaryProvet Supplies (Vic) Pty Ltd (PSV) is wholly owned by veterinarians. Until the acquisition, PSV's operations were limited to the wholesale distribution of products to veterinary clinics in Victoria and South Australia. Lyppard Holdings Pty Ltd (Lyppard) was also involved in the wholesale distribution of products to veterinary clinics, with offices in Melbourne, Brisbane, Townsville, Perth and Adelaide. The acquisition was completed on 19 October 2005.
Market definitionThe relevant product market for the assessment of this acquisition was considered to be the supply by licensed wholesalers of animal products to veterinary clinics. It was not considered critical to form a definitive view on the geographic scope of the market; however, the acquisition's impact was considered at both the state level (that is, in both Victoria and South Australia as the primary areas of overlap) and on an interstate basis (recognising the existence of interstate supply of products to veterinary clinics).
Competition analysisThe ACCC concluded that the acquisition would be unlikely to result in a substantial lessening of competition in the relevant markets and decided not to intervene.
In making its decision, the ACCC formed the view that the merged entity will continue to face competition from a number of other wholesalers with either a national presence or operating in the same region as PSV. Additionally, the ACCC considered that barriers to entry into the market did not appear to be significant.