Transit Systems Pty Ltd - proposed acquisition of Stradbroke Ferries Limited

Acquirer(s)

  • Transit Systems Pty Ltd

Target(s)

  • Stradbroke Ferries Limited

Summary

On 5 April 2011, the ACCC commenced a review of the proposed acquisition of Stradbroke Ferries Limited by Transit Systems Pty Ltd. Transit and Stradbroke Ferries are transport companies that each operate vehicle ferry services between Brisbane (Cleveland) and North Stradbroke Island (Dunwich).

Market definition

The ACCC considered this matter within the context of the market for the supply of vehicle ferry services on the Brisbane (Cleveland) and North Stradbroke Island (Dunwich) route.

Competition analysis

The ACCC concluded that the proposed acquisition would have the effect, or be likely to have the effect, of substantially lessening competition in the market for the supply of vehicle ferry services on the Brisbane (Cleveland) and North Stradbroke Island (Dunwich) route. To address these competition concerns, Transit offered a court enforceable undertaking that will reduce barriers to entry for a new entrant in the market.

Subject to the 87B undertaking, the ACCC concluded that the proposed transaction was unlikely to result in a substantial lessening of competition in the market.

On 30 November 2011, the ACCC accepted the 87B undertaking offered by Transit and announced that it would not oppose the proposed acquisition.

Undertakings

Document title Date

Timeline

DateEvent
05/04/2011ACCC commenced review under the Merger Review Process Guidelines.
21/04/2011Closing date for submissions from interested parties.
19/05/2011ACCC requested further information from the merger parties. ACCC timeline suspended. Former proposed date for announcement of ACCC findings of 2 June 2011 delayed.
23/06/2011ACCC received further information from the merger parties. ACCC timeline recommenced.
05/07/2011Former proposed decision date for announcement of ACCC's findings of 14 July 2011 delayed. ACCC timeline suspended at the request of Transit to allow the merger parties to provide further information.
26/09/2011Draft section 87B undertaking proffered by Transit. ACCC commenced market inquiries. ACCC timeline recommenced.
07/10/2011Closing date for submissions relating to draft 87B undertaking.
26/10/2011ACCC timeline suspended pending further information on the draft 87B undertaking.
24/11/2011ACCC received further information on draft section 87B undertaking. ACCC timeline recommenced.
30/11/2011ACCC announced it would not oppose the proposed acquisition, subject to the section 87B undertaking accepted by the ACCC.
01/12/2011The ACCC executed the section 87B undertaking.