ACCC Green Lights Energizer Spectrum Brands Buy
The ACCC has announced it will not block Energizer’s acquisition of Spectrum Brands’ global battery and portable lighting business, claiming market competition may be reduced, but “not substantially.”
Spectrum’s main battery brand in Australia is ‘Varta’, however, both companies remain global suppliers of consumer products.
ACCC Commissioner, Roger Featherston, affirms the planned acquisition will not breach section 50 of the local Competition and Consumer Act.
“The ACCC considers that the proposed acquisition would be likely to lessen competition in the market in Australia for consumer batteries, but not substantially.”
At current, Spectrum holds less than 5% of the consumer battery market in Australia.
The consumer watchdog’s recent investigation analysed whether Spectrum would provide a “strong competitive constraint” on market leaders – Energizer and Duracell – despite its comparatively small share.
Mr Featherston asserts Energizer will continue to face strong competition from Duracell, coupled with Spectrum’s “limited” brand recognition in Australia.
“Despite its strong brand recognition in Europe, Spectrum’s limited brand recognition in Australia and its limited market share mean Spectrum is unlikely to be a strong constraint on Energizer and Duracell in the medium-term”
“We also believe there are other brands and private label products that could fill a similar competitive niche in the market to Spectrum.”
Concerning the sale of portable lighting devices (e.g. torches) the ACCC asserts there are no major competitive issues.
Further information is available on the ACCC’s website here.