The ACCC has cleared the completed creeping acquisition of a 43% stake in Adelaide Brighton (ABC) by Barro Group and its related entities.
Barro Group (and its related entities) acquired a 43% stake in Adelaide Brighton over a number of years. Most purchases were by the 3% creep rule every six months.
The ACCC said in a statement on Thursday that it “ examined the completed acquisition closely because the two vertically integrated companies have overlap in the market for the supply of cement, pre-mixed concrete, and aggregates.”
The Commission said its investigation found Barro and Adelaide Brighton will continue to face competition from Boral, Holcim, and Hanson, three large vertically integrated competitors with national operations, along with a number of smaller independent competitors.
“On the basis of the information we have available to us, Barro’s stake in Adelaide Brighton will not substantially lessen competition. Major rival cement, aggregates, and pre-mixed concrete suppliers will continue to provide competition,” ACCC Commissioner Stephen Ridgeway said in the statement.
The ACCC closely considered competition impacts on the pre-mixed concrete and aggregates markets in Melbourne, Brisbane, and Townsville, where Barro and Adelaide Brighton’s operations overlap and did not identify any areas of concern.
Barro did not seek informal merger clearance from the ACCC prior to acquiring Adelaide Brighton.
The ACCC said it may reopen its investigation if it receives further information that alters its current conclusions.
ABC shares ended up 0.26% at $3.77.