Video Ezy / Blockbuster
On 9 May 2007, the ACCC released a Statement of Issues in relation to the proposed acquisition of Blockbuster by Video Ezy.
Both Video Ezy and Blockbuster are owners and franchisors of stores that primarily rent and retail DVDs and games to consumers in Australia. They are currently the first and second ranked national players in DVD rental revenue for ‘bricks-and-mortar’ stores.
The ACCC is concerned that the proposed acquisition may raise competition concerns in the national market for the wholesale purchase of new release DVDs, and in the local markets for the rental supply of DVDs to consumers.
The ACCC is currently in discussions with Video Ezy, and the announcement of the ACCC’s findings has been delayed pending further submissions from the parties.
Other developments
- Healthscope/Symbion: A consortium comprised of Healthscope Limited and two private equity firms (Ironbridge Capital and Archer Capital) has proposed to acquire and split up Symbion Health Limited. Under the proposal, Healthscope would acquire Symbion’s pathology, medical centres and diagnostic imaging businesses. Ironbridge Capital and Archer Capital would acquire Symbion’s pharmacy distribution and consumer businesses. The ACCC has sought comments, and is expected to make an announcement of its findings on 12 June 2007. Sigma Pharmaceuticals has also been speculated to be interested, with a Sigma takeover potentially raising competition concerns for the pharmaceutical wholesale and distribution businesses.
- Babcock & Brown / Alinta: A consortium of Babcock & Brown and Singapore Power, emerged as the victor of the bidding war for Western Australian energy infrastructure owner Alinta, winning over Macquarie Bank.
- APA/Qantas: Airline Partners Australia (APA), a consortium including Macquarie Bank, failed in its attempted takeover of Qantas Airlines. APA did not secure the necessary 50 per cent voting power in Qantas by 7.00pm on Friday 4 May 2007 to obtain an extension of the offer period. Both ASIC and the Takeovers Panel rejected APA’s attempts to resurrect the failed bid.
- Smorgon / Blue Scope Steel / OneSteel: The ACCC is still in discussions with the parties regarding the $2.2 billion proposed carve-up of Smorgon Steel, in which OneSteel Limited would acquire Smorgon’s manufacturing businesses and BlueScope Steel Ltd would acquire Smorgon’s distribution business.
More information
For information regarding possible implications for your business, contact a member of the Competition & Market Regulation team.