AUSTRALIA'S competition watchdog is seeking submissions on the possible Gunns takeover of Forest Enterprises Australia's state- of-the-art Bell Bay sawmill.
The Australian Competition and Consumer Commission posted an open letter on its website on August 19, calling for submissions on whether the proposed acquisition is in breach of Section 50 of the Trade Practices Act.
The letter states the ACCC "understands Gunns is participating in a competitive process to acquire the Bell Bay business".
Section 50 of the act prohibits mergers and acquisitions that "substantially lessen competition in a market, or are likely to do so".
A spokesman for the ACCC said the letter had also been sent to key players in the market, but could not divulge to how many or to which parties.
The letter includes specific information the ACCC is seeking from respondents with regard to the acquisition of softwood logs in Tasmania, the manufacture and supply of structural sawn timber, and the manufacture and supply of appearance grade softwood sawn timber.
Submissions to the ACCC close at 5pm on Tuesday, September 7.
Tim Norman, from FEA's receivers, Deloitte in Melbourne, was unavailable for comment yesterday evening.
The proposed acquisition has led to concern in the North-East that the purchase of FEA's mill at Bell Bay would render Gunns' Scottsdale sawmill redundant.
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