Two recent ACCC decisions in respect of proposed mergers (Westpac and St.George and Medibank Private and Australian Health Management Group) give an insight in to the way the ACCC analyses markets and the associated competition issues.
On 13 August 2008, the ACCC announced its decision not to oppose the proposed acquisition of St George Bank Limited by Westpac Banking Corporation. The ACCC was of the view that the proposed acquisition would not be likely to have the effect of substantially lessening competition in any relevant market, in contravention of section 50 of the Trade Practices Act 1974.
The ACCC’s public competition assessment (pdf) analyses each of the markets Westpac and St George operate in and the likely effect of the merger in each.
The Australian Competition and Consumer Commission will also not intervene in the proposed acquisition of Australian Health Management Group Limited by Medibank Private Limited.
In relation to health management services, the ACCC considered the proposed acquisition would not provide Medibank with an increased ability or incentive to foreclose competition in PHI consumer markets by restricting or limiting the supply of health management services. Read the review summary.
