Trescal Holding Pty Ltd’s (Trescal) proposed acquisition of TR Pty Ltd’s calibration and equipment sales business, TechRentals Calibration & Sales (TR Calibration) could substantially lessen competition and requires further in-depth assessment by the ACCC.
The ACCC has not approved the acquisition in its Phase 1 assessment, and has decided that the transaction will be subject to a Phase 2 review.
Trescal and TR Calibration both supply calibration services across a range of testing domains in Australia, including to customers seeking multiple calibration services from a single supplier.
Trescal and TR Calibration are also among a limited number of suppliers that are able to provide calibration services for reference equipment in the electrical testing domain.
“We consider that Trescal’s proposed acquisition could substantially lessen competition in the supply of calibration services in certain testing domains,” ACCC Commissioner Dr Philip Williams said.
“Information before the ACCC shows that there are limited viable competitive alternatives operating at a similar scale and with similar capabilities to Trescal and TR Calibration, particularly for the supply of calibration services in the electrical, radiofrequency, torque and force testing domains.”
The ACCC is also considering the impact of the acquisition on the supply of calibration services to customers seeking them from a single supplier across a range of testing domains. Based on the information before the ACCC, there appears to be a limited number of providers with the scope and capability to supply calibration services across multiple testing domains at a comparable scale to Trescal and TR Calibration.
The ACCC has not reached a conclusion on the issues and will continue to consider the acquisition in Phase 2.
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