Skyson Pty Limited - proposed acquisition of Plaspak Group Limited's plastic packaging business.

Summary

Skyson Pty Limited - proposed acquisition of Plaspak Group Limited's plastic
packaging business.

Market definition

The ACCC assessed the proposed acquisition under the narrowest possible markets, these being the national markets for the supply of non-beverage rigid plastic containers and plastic closures.

Competition analysis

1. Non-beverage rigid plastic containers
The ACCC decided that the proposed acquisition was unlikely to substantially lessen competition in the national market for non-beverage rigid plastic containers.
The ACCC found that there were low barriers to entry and expansion in the market for non-beverage rigid plastic containers. In particular, it appeared that there were low establishment costs for smaller suppliers and new entrants were able to access second-hand equipment to reduce costs. In addition, there was a high level of import competition.

2. Plastic Closures
The ACCC considered that the proposed acquisition was unlikely to substantially lessen competition in the national market for plastic closures because:
(i) market concentration would not change significantly; and
(ii) import levels were relatively high.