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ACCC issues Statement of Issues on proposed paint acquisition

Published on 2006-03-27. Author : SpecialChem

The Australian Competition and Consumer Commission issued a Statement of Issues identifying its preliminary competition concerns in respect of the proposed acquisition of Wattyl Limited by Barloworld Limited.

"After conducting market inquiries, the ACCC has formed the preliminary view that a merger of the second and third largest suppliers of architectural and decorative paint has the potential to lead to a significant reduction in competition and increased prices", ACCC Chairman, Mr Graeme Samuel, said.

"One of the issues that the market has identified as contributing to a reduction in competition is the difficulty of new entry and expansion due to the existing retail networks of the major suppliers and the importance of brand awareness. The ability of customers to source competitive paints from other suppliers would be limited".

The ACCC invites further submissions from the market focused on the matters outlined in its Statement of Issues. The deadline for making further submissions is 7 April 2006.

The Statement of Issues has been published in accordance with the ACCC's Guidelines for Informal Merger Reviews and outlines the facts and competition concerns which underpin these preliminary views. Those interested in making a submission can find a copy of the Statement of Issues by following the Public registers link to the Mergers and acquisitions register on the ACCC's website.

At the conclusion of this second phase of market inquiries, the ACCC will make a final assessment of the matter, and anticipates issuing its final decision by 4 May 2006.

Source: The Australian Competition and Consumer Commission (ACCC)


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