In the summer of 1993 in Australia, Trade Practices Commission is considering whether not always prescribe Santos Limited acquisition SAGASCO Holdings Limited. This merger was potentially of great importance, as Santos was the largest and third largest SAGASCO on shore natural gas producer in Australia. SAGASCO, who fought takeover, argued that the merger would substantially reduce competition in the natural gas market. Santos said that the natural gas industry was already highly concentrated and have always been disciplined competition from other fuels. This case is primarily designed to illustrate the analysis of the competitive effects of a merger, but it can also be used to discuss the relationship between competition policy and the regulation of natural monopolies. HKS Case Number 1484.0 "Hide
by Jose Gomez-Ibanez, FM Scherer 19 pages. Publication Date: Aug 01, 1998. Prod. #: HKS167-PDF-ENG