Sims Metal Management Ltd - proposed acquisition of Commercial Metal Recycling Services Pty Ltd

Summary

Sims Metal Management Ltd proposed to acquire Commercial Metal Recycling Services Pty Ltd.

Market definition

The ACCC considered the proposed merger within the context of:
- regional markets for the acquisition of ferrous scrap from scrap originators, scrap collectors and scrap dealers in Queensland;
- regional markets for the acquisition of non-ferrous scrap from scrap originators, scrap collectors and scrap dealers in Queensland;
-the markets for the supply of ferrous scrap metal to end users such as metal manufacturers, smelters and foundries in Queensland; and
-the market for the supply of non-ferrous scrap metal to end users such as metal manufacturers, smelters and foundries Australia.

For the purposes of the competition analysis, the ACCC did not consider it necessary to form a definitive view regarding market definition.

Competition analysis

The ACCC considered that the proposed merger was unlikely to result in a substantial lessening of competition in the relevant markets. Key factors informing this conclusion included:
- In relation to both ferrous and non-ferrous scrap, there would remain a number of scrap dealers post acquisition that would compete to acquire scrap; and
- In relation to both ferrous and non-ferrous scrap, there would remain a number of scrap dealers post acquisition that would compete to supply scrap.