Robert Bosch Investment Nederland BV - proposed acquisition of Pacifica Group Limited

Acquirer(s)

  • Robert Bosch Investment Nederland BV

Target(s)

  • Pacifica Group Limited

Summary

Robert Bosch Investment Nederland BV - proposed acquisition of Pacifica Group Limited

Market definition

The proposed acquisition was considered in the context of the national markets for the supply of:
- actuation components to automotive original equipment manufacturers; and
- brake pads to after-market customers.

Competition analysis

On 31 January 2007, the ACCC decided not to oppose the proposed acquisition of Pacifica Group Limited (Pacifica) by Robert Bosch Investment Nederland BV (Bosch). It appears that in the national market for the supply of actuation components to automotive original equipment manufacturers (AOEMs), the merged entity would face a credible competitive constraint from alternative suppliers of actuation components including incumbent and previous suppliers to the Australian market as well as the threat of potential imports from overseas suppliers.

The ACCC also considered the barriers to entry and expansion into the market do not appear to be high for existing global suppliers of actuation components and that the merged entity would be constrained by the countervailing power of the AOEMs with ties to parent companies with global operations.

The ACCC also considered that in the national market for the supply of brake pads to after-market customers, the proposed acquisition would only see a nominal increase in the merged entity's market share.

After consideration of the merger factors the ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition.

Timeline

DateEvent
08/12/2006ACCC commences review under the Merger Review Process Guidelines.
13/12/2006Market inquiries commenced.
28/12/2006ACCC requested further information from Bosch.
09/01/2007Closing date for submissions from interested parties.
11/01/2007ACCC received Bosch's response to 28 December information request.
31/01/2007ACCC decided that it would not oppose the proposed acquisition.