Australia Post - proposed acquisition of StarTrack

Summary

Australia Post proposed to acquire the remaining 50% of StarTrack that it does not currently own (via AUX) and sell its 50% interest in AaE (via AUX) to Qantas.

Market definition

The ACCC did not consider it necessary to form a concluded view in relation to market definition.

The ACCC considered the effects of the proposed acquisition on the supply of express small package delivery services in Australia.

While both Australia Post and StarTrack provide a range of services this was the only area where there was overlap between the parties.

Competition analysis

The ACCC concluded that the proposed acquisition was unlikely to substantially lessen competition in the market for the supply of express small package (up to 32 kg) delivery services in Australia.

The ACCC considered that the competitors to the merged entity would continue to provide a strong competitive constraint post-acquisition for the supply of express small package delivery services in Australia.

The ACCC also had regard to the existing level of strategic influence that Australia Post exerts on StarTrack by virtue of its 50% shareholding. In this regard, the ACCC did not consider that the proposed acquisition was likely to result in a significant impact upon the existing structure in the relevant market.