Is it appropriate to think of all of Australia as a single geographic market for natural gas? If so, explain why. If not, how would you define the relevant geographic market(s)?

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Is it appropriate to think of all of Australia as a single geographic market for natural gas? If so, explain why. If not, how would you define the relevant geographic market(s)?

Question Description

Instructions: Read the case “Sagasco Holding Limited” in the case packet and briefly respond to the case question(s) below.

Please limit your write-up to one page, single-spaced, 11pt font.

Based on your reading of the case, respond concisely to the following question(s):

(a) Is it appropriate to think of all of Australia as a single geographic market for natural gas? If so, explain why. If not, how would you define the relevant geographic market(s)?

(b) Based on your geographic market definition(s) above, would you expect the Santos / SAGASCO merger to increase market power?

(c) Should regulators be concerned that Santos / SAGASCO would have a controlling share of the Moomba processing facility? Why or why not?