Mergers

Preliminary competition concerns over Aon's proposed merger of Willis Towers Watson

The ACCC has preliminary competition concerns with Aon plc’s (Aon) proposed merger with Willis Towers Watson plc (WTW).

Aon and WTW are two of the three largest providers of commercial risk, reinsurance and employee benefits broking and advisory services globally, including in Australia.

The ACCC is concerned that the proposed merger will significantly lessen competition in the supply of these services in Australia.

Preliminary competition concerns over MYOB’s GreatSoft acquisition

The ACCC has outlined preliminary competition concerns that MYOB’s proposed acquisition of GreatSoft could substantially lessen competition in the accounting software market.

MYOB and GreatSoft both supply practice management software to medium-to-large accounting firms.

“We are concerned that if MYOB acquired GreatSoft, there would only be three major suppliers of practice management software to medium-to-large accounting firms,” ACCC Commissioner Stephen Ridgeway said.

ACCC rejects Google behavioural undertakings for Fitbit acquisition

The ACCC has announced that it will not accept a long-term behavioural undertaking offered by Google that sought to address competition concerns about its proposed acquisition of wearables supplier and manufacturer Fitbit.

The ACCC will therefore continue its investigation into Google’s proposed acquisition of Fitbit and has set a new decision date of 25 March 2021.

BGC's proposed acquisition of Midland Brick not opposed

The ACCC will not oppose BGC’s proposed acquisition of Midland Brick.

BGC and Midland Brick both manufacture and supply clay bricks in Western Australia, along with other clay and masonry building products. BGC is also a residential and commercial builder.

“We examined the proposed acquisition carefully, because it would combine two of the three major suppliers of clay bricks in the West Australian market,” ACCC Commissioner Stephen Ridgeway said.

Preliminary competition concerns over Woolworths' PFD acquisition

The ACCC has outlined preliminary competition concerns with Woolworths’ (ASX: WOW) proposal to acquire 65 per cent of PFD Food Services.

PFD is a wholesale food distributor, purchasing a wide range of food products from manufacturers and distributing them to food service businesses such as restaurants and cafés, fast food franchises, hotels and clubs.

“The ACCC is concerned that the proposed acquisition seems likely to increase Woolworths’ already substantial bargaining power in its dealings with food manufacturers,” ACCC Chair Rod Sims said.

ACCC's Pacific National appeal will not be heard by the High Court

The High Court of Australia has today dismissed the ACCC’s application for special leave to appeal from the Full Federal Court’s decision that Pacific National’s acquisition of the Acacia Ridge terminal from Aurizon (ASX: AZJ) would not be likely to substantially lessen competition. 

The dismissal of the ACCC’s application for special leave means that the decision of the Full Federal Court stands, and Pacific National can proceed with its acquisition of the Acacia Ridge Terminal.

Global focus on competition and digital platforms

The ACCC is closely watching global anti-trust efforts focusing on major digital platforms, including the US Department of Justice’s recent case against Google and proposed new competition laws in Europe, ACCC Chair Rod Sims said today.

In his annual address to the Law Council of Australia Business Law Section’s Competition and Consumer Workshop, held online, Mr Sims said there was much activity underway in this area.

ACCC to investigate the acquisition of iSelect shares by Compare the Market's owners

The ACCC is investigating acquisitions by Innovation Holdings Australia Pty Ltd. that would provide it with approximately 35 per cent of the shares of iSelect Limited (ASX: ISU).

Innovation Holdings (through its related bodies corporate) owns comparison site comparethemarket.com.au. Compare the Market and iSelect both offer services to consumers that compare various insurance, energy and financial products and services.

South Pacific Laundry withdraws bid for Spotless Laundries

South Pacific Laundry (SPL) has withdrawn its request for merger clearance of its proposed acquisition of Spotless Laundries after it decided not to proceed with the transaction.

Spotless Laundries is part of Spotless Group Holdings Limited which is wholly-owned by Downer EDI Limited (ASX:DOW).

Spotless Laundries and SPL both offer commercial laundry services in multiple cities and regions across Australia.

Alsco withdraws bid for Spotless Garments

Alsco Pty Ltd has withdrawn its request for informal merger clearance by the ACCC of its proposed acquisition of Spotless Laundries’ garment laundering business (Spotless Garments). Spotless Garments is part of Spotless Group Holdings Limited which is wholly-owned by Downer EDI Limited (ASX:DOW).

Alsco and Spotless Garments are major suppliers of hiring, cleaning and delivery services for garments across Australia.