The Australian Competition and Consumer Commission will not intervene in the proposed acquisition by New Holland NV of Case Corporation.
"Following market inquiries among farmers, equipment dealers and suppliers, the ACCC concluded that the proposed acquisition is unlikely to substantially lessen competition, due to the presence of several vigorous and effective competitors in Australian agricultural and construction equipment markets," ACCC Chairman, Professor Allan Fels, said today.
Some concerns were raised that the proposal may substantially lessen competition in rural and regional Australia by reducing access to dealer distribution channels for smaller competing suppliers. The nature of these concerns was that the merged firm may have the ability and incentive to force dealers into exclusive dealing arrangements.
In recognition of these concerns, following completion of the proposed merger the Commission will monitor exclusive arrangements between suppliers and dealers.
"Following market inquiries among farmers, equipment dealers and suppliers, the ACCC concluded that the proposed acquisition is unlikely to substantially lessen competition, due to the presence of several vigorous and effective competitors in Australian agricultural and construction equipment markets," ACCC Chairman, Professor Allan Fels, said today.
Some concerns were raised that the proposal may substantially lessen competition in rural and regional Australia by reducing access to dealer distribution channels for smaller competing suppliers. The nature of these concerns was that the merged firm may have the ability and incentive to force dealers into exclusive dealing arrangements.
In recognition of these concerns, following completion of the proposed merger the Commission will monitor exclusive arrangements between suppliers and dealers.