Acquirer(s)
- Neopost SA
Target(s)
- Ascom Holding AG, Ascom Service Automation (Australia) Pty Ltd
Summary
The French company Neopost SA ("Neopost") proposes to acquire the Mailing Systems Division of the Swiss company Ascom Holding AG ("Ascom"). This will result in Neopost acquiring 100% of the Australian company Ascom Service Automation (Australia) Pty Ltd.Market definition
The relevant markets were defined as being:(1) The market for the distribution and sale of franking machines in Australia;
(2) The market for the distribution and sale of folding and inserting machines in Australia;
(3) The market for the distribution and sale of letter openers in Australia; and
(4) The market for the servicing of mailroom products in Australia.
Competition analysis
The Commission's reasons for its decision in relation to each market are summarised below.Market (1)
The Commission determined that the acquisition would not result in a substantial lessening of competition in the market for the distribution and sale of franking machines in Australia for reasons including the following:
(a) The acquisition will not result in the removal of a vigorous and effective competitor;
(b) Prices are unlikely to be increased due to diminishing demand for the product and strong competition; and
(c) There appears to be a reasonable degree of countervailing power.
Market (2)
The Commission determined that the acquisition would not result in a substantial lessening of competition in the market for the distribution and sale of folding and inserting machines in Australia for reasons including the following:
(a) Barriers to entry do not appear high;
(b) The acquisition is not thought to result in the removal of a vigorous and effective competitor;
(c) Distributors appear willing to supply products from a range of suppliers; and
(d) There appears to be a reasonable degree of countervailing power.
Market (3)
The Commission determined that the acquisition would not result in a substantial lessening of competition in the market for the distribution and sale of letter openers in Australia for reasons including the following:
(a) Customers have significant countervailing power; and
(b) Barriers to entry do not appear to be high.
Market (4)
The Commission determined that the acquisition would not result in a substantial lessening of competition in the market for the servicing of mailroom products in Australia. The Commission's decision was based on the fact that it does not believe that a substantial lessening of competition will result in related markets (1), (2) and (3) stated above.
Based on information obtained to date, the Commission does not intend to intervene in the proposed acquisition but requests that it be informed of its progress.
Merger type
Horizontal
Guidelines thresholds
Unknown
Imports above 10%
N/A
Initiation
Other
ANZSIC code
7863