Yamaha Motor Company Ltd (YMC), in Australia, is planning to acquire full ownership of Telwater from Bombardier Recreation Products Inc (BRP), along with its property in Coomera, Queensland, where aluminium trailer boats, mainly used for leisure purposes, are manufactured, assembled, and stored.
Telwater is a reputable manufacturer of trailer boats serving popular brands like Quintrex, Stacer, and Yellowfin, which could be a reason for Yamaha showing interest in acquisition, using Telwater’s dominant position to favour its own motors over its rivals like Mercury and Suzuki in the Australian wholesale market, flagged by the Australian Competition and Consumer Commission (ACCC). The government department has clearly raised concerns that this acquisition by Yamaha might reduce competition in the wholesale market for outboard motors and aluminium boats in Australia, forcing consumers to buy from fewer choices and at higher prices.
ACCC Commissioner Dr Philip Williams said, "We are concerned that, following the acquisition, Yamaha would have the ability and incentive to link the wholesale supply of Yamaha outboard motors to Telwater aluminium trailer boats, for example, by requiring dealers of Telwater boats to also become Yamaha outboard motor dealers”.
Dr Williams also cited, "This acquisition could make it much harder for other outboard motor suppliers to compete effectively with Yamaha, ultimately reducing the choice and competitive offerings available to consumers. This could ultimately lead to higher prices and reduced choice or quality for consumers seeking to purchase a new aluminium trailer boat or outboard motor."
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Yamaha Motor Company (YMC) Ltd manufactures outboard motors mainly in countries like Japan and sells them in Australia through its fully owned subsidiary, Yamaha Motor Australia Pty Ltd (Yamaha). It doesn’t currently manufacture boats or trailers in Australia, though it supplies a few trailer boats to dealers within Australia via a third party within the company.
The acquisition of Telwater would be a strategic move for Yamaha, enabling it to enter the Australian boat manufacturing market and combine its motors with Telwater’s aluminium boats. This would help to strengthen Yamaha’s position in the Australian market, but would also raise competition concerns among the rival companies.
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