- Direct Paper
Spicers Limited proposes to acquire the assets comprising the business trading as Direct Paper from Wilmaridge Pty Ltd as trustee for the O’Neill Family Trust.
The ACCC considered the effects of the proposed acquisition on the markets for the wholesale supply of commercial printing paper in each of Sydney, Melbourne and Brisbane.
The ACCC concluded that Spicers’ proposed acquisition was unlikely to substantially lessen competition in any relevant market.
The proposed acquisition would combine the second and third largest commercial printing paper suppliers (or paper merchants). Other competitors in the various markets include Ball & Doggett, Vital, Domain and Special Equipment.
In Sydney and Melbourne, the ACCC found that the parties would continue to face competition from a number of paper merchants with supply warehouses in those cities including Ball & Doggett, Vital and Domain.
In Brisbane where there are less options, the ACCC found that:
· barriers to expansion were low and printers were willing to support alternative suppliers, providing the opportunity for smaller paper merchants to enter or expand, and;
· existing paper merchants were likely to be constrained by the growing prospect of printers switching to direct supply from overseas mills as an alternative source for at least some of their supply.
Taking into account the collective impact of these factors, the ACCC decided not to oppose the proposed acquisition of Direct Paper by Spicers.
|Spicers Direct Paper - Market inquiries letter - 27 November 2019 ( PDF 270.93 KB )||27 Nov 2019|
|27/11/2019||ACCC commenced informal review under the Informal Merger Review Process Guidelines.|
|13/12/2019||Closing date for submissions.|
|20/02/2020||ACCC announced it would not oppose the proposed acquisition.|