Britax Childcare Pty Ltd - proposed acquisition of BabyLove Products Pty Ltd

Summary

Britax Childcare Pty Ltd proposes to acquire BabyLove Products Pty Ltd. Both firms manufacture and supply child car restraints throughout Australia, and also import and distribute infant wheeled goods (strollers and prams) onto the Australian market.

Market definition

1) The market for child car restraints for ages up to 3 to 4 years old (type A, type B and type AB restraints) in Australia;

2) The market for child booster seats for ages 3 to 7 years old (type BE and type E restraints) in Australia; and

3) The market for infant wheeled goods (strollers and prams) in Australia.

Competition analysis

In relation to the market for child car restraints for ages up to 3 to 4 years old, the ACCC formed the view that in the high end segment of the market, Britax is the very clear leader. BabyLove is not a significant competitor in this segment, so the acquisition will only marginally increase Britax's share of sales. In the low and medium end segments, the bargaining power of large retail chains is relatively strong, and potential barriers to entry such as brand loyalty are less significant.

In terms of the market for child booster seats for ages 3 to 7 years old, the ACCC formed the view that barriers to entry are not high, brand loyalty is not particularly significant and countervailing power is relatively strong.

In relation to the market for infant wheeled goods, the ACCC formed the view that there is a high level of imports (over 95 per cent), and supply is not heavily concentrated.

After consideration of the information provided by market participants and other information before it, the ACCC formed the view that the proposed acquisition is unlikely to result in a substantial lessening of competition in the markets outlined above, and decided that it would not oppose the proposed acquisition.