Xstrata Canada Acquisition Corp - proposed acquisition of LionOre Mining International Ltd

Acquirer(s)

  • Xstrata Plc

Target(s)

  • LionOre Mining International Ltd

Summary

Xstrata plc, through its subsidiary Xstrata Canada Acquisition Corporation proposes to acquire all the issued and outstanding shares of LionOre Mining International Limited

Market definition

The proposed acquisition was considered in the context of the worldwide market for nickel production.

Competition analysis

On 18 April 2007, the ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant market. Factors informing this conclusion include:

- nickel is a globally traded commodity with the majority of nickel produced in Australian being exported;
- there would be significant potential import competition with Australian customers likely to be able to access imports in response to an increase in domestic prices;
- alternative suppliers including MMC Norilsk Nickel Group, CRVD Inco and BHP Billiton would be readily accessible; and
- prices for nickel are referenced to international mediums such as the London Metal Exchange.

Timeline

DateEvent
27/03/2007ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced
06/04/2007Closing date for submissions from interested parties
17/04/2007Proposed date for announcement of ACCC's findings.
18/04/2007ACCC announced it would not oppose the proposed acquisition