ACCC acknowledges Boral’s withdrawal of AdBri bid

ACCC acknowledges Boral’s withdrawal of AdBri bid
11 October 2004

The competition regulator today formally acknowleged that legal proceedings against Boral Ltd’s troubled $840m bid for Adelaide Brighton Ltd had been called off.

Boral last month abandoned its takeover bid for the cement and lime producer, explaining it was no longer worth the time, money and effort of a court battle with the Australian Competition and Consumer Commission (ACCC).

The ACCC had opposed the bid in the Federal Court, with legal proceedings begun in June.

However those proceedings have now been brought to a close.

"The withdrawal of the bid and provision of court enforceable undertakings is a successful outcome for the ACCC, which held the view that the proposed takeover was likely to lead to a substantial lessening of competition," said ACCC chairman Graeme Samuel in a statement.

"The acquisition would have removed a significant and predominantly independent source of cement from the industry, effectively leaving the market in the hands of the two major manufacturers.

"This matter also demonstrates the ACCC’s resolve, and confirms my statements, that the ACCC will not hesitate to take action to prevent transactions that are likely to breach the Act and harm Australian consumers and businesses."

Boral first launched its takeover bid for Adelaide Brighton in December last year, offering $1.55 per share to capitalise Adelaide Brighton at $840 million.

However Boral Managing director Rod Pearse said last month that since the bid was launched, the likely cost of the acquisition and of the divestments required to address the competition issues had increased while the likely access to synergies had decreased.

Published under Cement News