Woolworths has received clearance from the New Zealand Commerce Commission for its proposed full acquisition of Beak & Johnston Holdings Pty Ltd.
“Our investigation found that notwithstanding Woolworths’ significant retail grocery business, the proposed acquisition was unlikely to result in the merged entity refusing to supply Beak & Johnston products to rival grocery retailers, refusing to purchase products from a rival supplier, or doing so on less favourable terms such that it would substantially lessen competition,” John Small, Chair of the Commerce Commission, said.
Small added that the commission doesn’t believe that Woolworths would have the capacity to restrict rival retailers from accessing convenience or ready-meals.
The Commerce Commission also does not believe that any attempt to do so would lead to a substantial lessening of competition in relevant retail markets.
The Commerce Commission noted it considered the potential impact of the proposal on competition in national markets for slow cooked meats, chilled and canned soups, chilled and frozen ready-made meals, and pies.
“Our investigation considered whether there was a risk of Woolworths either delisting the products of rival suppliers to Beak & Johnston or compromising the attractiveness of their products,” Small said.
“Ultimately, we didn’t consider delisting of rival suppliers to be a likely scenario in this case, as Woolworths is unlikely to want to reduce the range of products it sells in these categories, which are generally projected to grow.”
Moreover, Small said that the commission did not find evidence that the proposed acquisition would significantly change decisions on the ranging, shelf-positioning or pricing of private label and Beak & Johnston branded products in Woolworths stores that would affect competition.