The Independent Consumer and Competition Commission (“ICCC”) wishes to announce to relevant stakeholders and the general public that it has approved for Dye & Durham Corporation (“D&D”) to proceed with its proposal to acquire all of the shares in PNG Registries Pty Limited (“PNG Registries”).
ICCC Acting Chief Executive Officer, Mr. Brian Ivosa said, “after taking into consideration D&D’s Clearance Application and its submission including comments from relevant stakeholders and other available information, the ICCC has concluded that the proposed acquisition will not have, and will not be likely to have the effect of substantially lessening competition in any markets in PNG.”
The ICCC formed the following conclusions in its assessment of the application:
· D&D has no business operations anywhere in PNG and the Proposed Acquisition would only change the ownership of PNG Registries (as a result of the Transaction involving D&D and the ultimate parent company of PNG Registries). The current structure of the market will remain the same including the level of competition post-acquisition.
· The ICCC also considered that the acquisition will not remove PNG Registries in the provision of registry services in PNG. As noted, D&D is only acquiring the ultimate parent company of PNG Registries; hence will indirectly own PNG Registries post-acquisition. The number of players in the market will remain the same.
· The ICCC considered that the barriers to entry in the provision of share registry services are high due to the high startup costs and the limited or low volume of publicly listed companies and their share transactions. Whilst appreciating the existence of these barriers to entry, the ICCC considered that the Proposed Acquisition will not in any way affect the current level of barriers to entry in the market by either enhancing or decreasing them.
· Due to the nature of the registry services market, the ICCC considered that it is unlikely for a third competitor to be a viable entrant due to the market reaching its maximum efficient scale.
Mr. Ivosa also explained the requirements of the law governing the Clearance process.
“The ICCC Act requires that if the ICCC is satisfied that a proposed acquisition which is subject of a Clearance application would not have, or would not be likely to have, the effect of substantially lessening competition in a relevant market, the ICCC must give a clearance; and vice versa.”
“In this case, the ICCC was satisfied that the acquisition of PNG Registries by D&D is not likely to result in substantial lessening of competition in any markets in PNG. Basically, D&D has passed the Clearance Test; hence the acquisition must be approved.”
A copy of the Determination is available and can be provided upon request through this email: wtondop@iccc.gov.pg or can be accessed on the ICCC’s website: www.iccc.gov.pg
All queries relating to this matter should be directed to Mr. Steven Sugl, Executive Manager, Competitive Markets & Fair-Trade Division on telephone 312 4600 or e-mail to: ssugl@iccc.gov.pg .