The Australian Competition and Consumer Commission has received a court-enforceable undertaking from ABC Learning Centres to address concerns over ABC’s acquisition of Hutchison’s Child Care Services.
On Friday, ABC gave an undertaking to sell seven long day child care centres in five regional areas mainly in Queensland.
ACCC’s chairman Graeme Samuel said the body considers this undertaking is necessary to ensure that prices for long day child care services in these areas do not rise as a result of the merger and that, in particular, parents in regional areas continue to have a choice of long day child care services for their children.
“Consistent with its assessments of previous childcare acquisitions, the ACCC recognised that the competition effects of the proposed acquisition were more likely to be felt in local areas.
“The ACCC conducted a comprehensive consultation process in order to assist its assessment of the proposed transaction and has determined that, subject to the divestitures required by the undertaking, the acquisition will not lead to a substantial lessening of competition in any relevant market,” Samuel added.
The identities of the centres to be divested will remain confidential until the sale is complete.
There are more than 5000 long day care child care centres in Australia. ABC currently owns or operates around 900 long day child care centres in Australia in all states and territories.
Hutchison’s currently owns or manages 86 long day child care centres in QLD, New South Wales, Victoria, South Australia and Tasmania.
By Adam Parsons
