Iron Mountain Obliged to Sell Most of Australian Business
To resolve Australian Competition and Consumer Commission concerns
This is a Press Release edited by StorageNewsletter.com on April 5, 2016 at 2:57 pmThe Australian Competition and Consumer Commission will not oppose the proposed acquisition of Recall Holdings by Iron Mountain Incorporated after accepting a court enforceable undertaking from Iron Mountain to sell most of its Australian business.
“The ACCC had significant concerns that the proposed acquisition, in the absence of the undertaking, would have been likely to substantially lessen competition for physical document management services,” ACCC chairman Rod Sims said.
“Recall is currently Iron Mountain’s closest competitor for physical document storage. By combining these two companies, the proposed acquisition could have left customers vulnerable to price increases or reduced service levels in a market where there are high costs to switch providers.“
“In light of the ACCC’s concerns, Iron Mountain has undertaken to divest its entire Australian business, other than its local records management customers in the Northern Territory and its data protection business. In effect, this undertaking would unwind the proposed acquisition in the markets of concern in Australia,” Sims said.
The acquisition is also being considered by competition authorities in the United States of America, the UK, and Canada.