About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

9 Corp. & Bus. L.J. 223 (1996)
Issues Raised by the Proposed Acquisition of Taubmans by Wattyl

handle is hein.journals/candbul9 and id is 227 raw text is: ISSUES RAISED BY THE PROPOSED ACQUISITION OF TAUBMANS BY WATTYL by Rhonda L Smith* Wattyl approached the Australian Competition and Consumer Commission ('ACCC') late in July 1995, seeking informal approval to acquire the architectural and decorative paints division of Taubmans, owned by Courtaulds, a British company. By early August, the Commission had advised Wattyl that such an acquisition was likely to substantially lessen competition, thereby breaching s50 of the Trade Practices Act 1974 (Cth) ('TPA'). Discussions between the parties and the ACCC continued until the proposed acquisition was made public on 23 October 1995. The ACCC then commenced market inquiries in relation to the proposal which reaffirmed its earlier position. In early December, following further discussions, the Commission again advised the parties that the proposed acquisition was likely to breach s50 of the TPA. On 11 March 1996, the Commission instituted proceedings in the Federal Court to restrain Wattyl and Taubmans from completing the deal, and this injunction was granted on 14 March 1996. However, rather than proceeding to a hearing of the matter in the Federal Court, the parties then applied to the ACCC for authorisation of the merger on 3 April 1996. The Commission issued its determination refusing authorisation on 17 May 1996 and, on 6 June 1996, Wattyl and Taubmans sought a review of the Commission's decision by the Australian Competition Tribunal. However, just prior to the commencement of that review, Courtaulds announced the sale of Taubmans to Plascon, a South African paint producer. Had the Tribunal review proceeded, a number of issues of importance for competition policy would have been canvassed. The purpose of this article is not to comment on the validity of the claims of Wattyl and Taubmans on the one hand, or on the decision of the ACCC on the other. The latter is a publicly available document.I Rather, the purpose is to outline and consider the key issues raised by the takeover proposal which may be relevant to future mergers. * Commissioner with the Australian Competition and Consumer Commission ('ACCC'). The views expressed are the author's own and are not necessarily those of the Commission. The author is grateful to Dr Jill Walker, Professor Allan Fels and Mr Hank Spier for comments on an earlier draft of this article. 1 Re Wattyl (Australia) Pty Ltd, Courtaulds (Australia) Pty Ltd & Ors (1996) ATPR (Com) 150-232.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most