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| Company |
Code |
Released |
Type |
Headline |
| Rio Tinto Limited |
RIO |
3 Oct, 2007, 16:06 |
GENERAL |
A.C.C.C. NOT TO OPPOSE PROPOSED ACQUISITION OF ALCAN
BY RIO |
| Full Text of Announcement |
A.C.C.C. NOT TO OPPOSE PROPOSED ACQUISITION OF ALCAN
BY RIO
TINTO
The Australian Competition and Consumer Commission
will not intervene in the acquisition of Alcan Inc by
Rio Tinto plc, ACCC Chairman, Mr Graeme Samuel, said
today.
"The ACCC closely considered the potential for
competition concerns arising from the aggregation of
assets in aluminium, alumina and bauxite
production," Mr Samuel said.
"One focus of the ACCC's assessment was the
supply of bauxite in Queensland.
The ACCC had particular regard to Alcan's Cape York
deposits as a source of potential bauxite supply in
competition with Rio Tinto's Weipa mine," Mr
Samuel said.
"The ACCC investigated this issue in detail and
considered all available information, including
internal documents from the relevant parties. The ACCC
decided that the extent of potential competition
between Rio Tinto and Alcan in the supply of bauxite
which would be removed by the acquisition would not be
sufficient to indicate a likely substantial lessening
of competition.
"The ACCC also closely investigated the
aggregation of refineries producing alumina and took
into consideration the high levels of vertical
integration in the industry. The acquisition results
in significant aggregation in alumina production,
particularly along
the east coast. However, the ACCC considered that
other sources of competitive alumina supply exist for
the non-integrated purchasers of alumina, particularly
from diversion of currently exported alumina into the
domestic market.
"The third key focus of the ACCC's investigation
was aluminium. The ACCC considered the possibility of
separate markets for some types of aluminium,
particularly extrusion billet, due to a lack of
substitutability from the perspective of purchasers
and from the perspective of suppliers. However, the
ACCC considered
that for all aluminium products competitive tension
would remain in the domestic market and that
ultimately the threat of imports would also be likely
to act as a competitive constraint.
"Bauxite, alumina and aluminium are all, to a
greater or lesser extent, export industries for
Australia," Mr Samuel said. "Even though
these are export industries, the ACCC focussed on the
supply of the relevant products to customers located
in
Australia."
Media inquiries
Mr Graeme Samuel, Chairman, (02) 6243 1131 or
mobile/pager 0408 335 555
Dr Stephen King, Commissioner, (02) 6243 1178 or 0439
988 901
Ms Lin Enright, Director, Media Unit, (02) 6243 1108
or 0414 613 520
General inquiries
Infocentre: 1300 302 502
NR 266/07
3 October 2007 |
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