CRA prepared a report in support of the merger of PMP (a major catalogue and magazine printer in Australia) and IPMG (a rival printer) before the ACCC.  The work included the preparation of an expert report analysing the competitive effects of the transaction in the context of Bertrand models of price-setting competition with respect to homogenous and differentiated products.  Our conclusion was that although the merger may be characterised as a “three to two” among firms with large shares of current supply, it could not be assumed that the transaction would lead to significant price increases, and indeed many mitigating factors provided good arguments that the merger was unlikely to substantially lessen competition.  The transaction was ultimately cleared by the ACCC on the basis that although the ACCC expected a lessening of competition, this lessening was not likely to be substantial.