ABC Learning Centres Limited - proposed acquisition of 123 Careers Pty Ltd

Summary

ABC Learning Centres Limited proposed to acquire 123 Careers Pty Limited's childcare recruitment business.

Market definition

This proposed acquisition was assessed within the context of the following national markets:

1. the supply of child care workers to child care centres (Market 1); and
2. the acquisition of placement services for child care workers (Market 2).

Competition analysis

On 24 October 2008, the ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. Factors informing this conclusion included:

1. As 123 Careers supplies its services almost exclusively to its related companies and ABC, the proposed acquisition is unlikely to lead to the removal of a vigorous and effective competitor in either market;

2. Barriers to entry to the relevant markets are low; and

3. There are a number of competitors to 123 Careers in Market 1.