Glencore International plc - proposed acquisition of Xstrata Plc
Type of assessment
Glencore International plc
Glencore International plc proposes to acquire Xstrata plc. Glencore currently has a 34 percent stake in Xstrata.
Outcome of assessment
Total review days *
Commenced public review
10th April 2012
3rd July 2012
The ACCC considered that the relevant product markets were as follows:
-In relation to copper:
-In relation to nickel:
- In relation to cobalt:
- In relation to zinc:
- In relation to seaborne Coal:
The ACCC considered the impact on the proposed acquisition on both the Australian and global markets for these products.
The ACCC considered that the proposed acquisition was unlikely to cause a substantial lessening of competition in any of the relevant Australian markets. In relation to each of the relevant products, the merged entity would have a relatively low share of global production and would compete against a number of remaining substantial competitors. Based on inquiries with Australian customers, the ACCC considered, in relation to certain of the relevant products, that any impact in global markets would have minimal impact on Australian users of those products or end-consumers.
The ACCC did not consider that there was a likelihood of anti-competitive effects arising from the vertical integration of Xstrata's mining and production activities with Glencore's extensive third-party trading activities. The ACCC noted that a significant proportion of sales in the relevant markets were direct sales, not involving any third-party trader, and considered that the merged entity would lack the requisite market power (at either the production or acquisition levels) to be able to engage in any foreclosure strategy to the detriment of other producers or traders.
10th April 2012
ACCC commenced review under the Merger Review Process Guidelines.
1st May 2012
Closing date for submissions from interested parties.
28th May 2012
ACCC requested further information from Glencore. ACCC timeline suspended. Former proposed decision date for announcement of ACCC's findings of 7 June 2012 delayed.
13th June 2012
ACCC received further information from Glencore. ACCC timeline recommenced.
4th July 2012
ACCC announced it would not oppose the proposed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.