Xstrata Coal Pty Ltd - proposed acquisition of Gloucester Coal Ltd

Acquirer(s)

  • Xstrata Coal Pty Ltd

Target(s)

  • Gloucester Coal Ltd

Summary

Xstrata coal proposes to acquire Gloucester Coal Limited.

Market definition

The proposed acquisition was considered in the context of the markets for thermal and metallurgical coal production.

Competition analysis

The ACCC considered that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets.

Factors informing this conclusion included:
- Gloucester's coal production represents a small proportion of overall Australian production. The acquisition would result in a marginal increase in Xstrata's market shares.
- Both parties export a vast majority of their coal.
- There are alternative suppliers, including Rio Tinto and BHP Billiton.

Timeline

DateEvent
18/04/2007ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced
26/04/2007ACCC announced it would not oppose the proposed acquisition