ACCC raises concerns about Assa Abloy fire doors deal

The ACCC has raised preliminary concerns about Assa Abloy’s proposed acquisition of E Plus Building Products Pty Ltd, with Commissioner Stephen Ridgeway stating that the preliminary view of the ACCC is that:

the proposed acquisition raises significant competition concerns in what is an already highly concentrated market …

There are only three companies who supply fire door cores to external manufacturers, outside their own vertically integrated business. Combining Pyropanel and E Plus would create a market with only two suppliers, with Assa Abloy controlling about two thirds of that market. The ACCC believes that there is a real chance that this will lead to higher prices for Australian businesses which require certified fire doors.

A final decision is slated for 5 March 2020, with submissions on the Statement of Issues due by 28 November 2019.

See ACCC media release and ACCC Merger Register (including the Statement of Issues) for further details.