Acquirer: Brambles Industries Ltd; Target: Ausdoc Information Management Pty Ltd

Summary

Brambles intends to lodge an expression of interest for the purchase of Ausdoc Information Management, the records management business of The Ausdoc Group

Market definition

The relevant markets appear to be:
- the supply of physical record management services;
- the supply of electronic information services; and
- the supply of secure destruction services.

Competition analysis

Despite a high market share, the possible acquisition would not appear likely to substantially lessen competition because:
- the merged entity will face continued competition from two companies able to compete for large business contracts, and numerous smaller competitors able to expand their operations were prices to rise;
- barriers to entry appear to be low with low sunk entry costs and a growing market;
- customers appear to have a degree of countervailing power which is significant in their initial choice of supplier; and
- market dynamics, particularly technological development in the electronic information management market will continue to provide an important competitive constraint.

The Commission therefore decided not to intervene in the possible acquisition.

Merger type

Horizontal

Guidelines thresholds

Crossed

Imports above 10%

No

Initiation

Parties

ANZSIC code

7832