Australia’s largest food retailer Woolworths has been granted clearance to take full control of Beak & Johnston.
New Zealand’s Commerce Commission announced the clearance earlier today (17 April).
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The acquisition sees Woolworths purchase the 77% interest in B&J City Kitchen Pty and Alors Holdings Pty that it does not own, along with 100% of Beak & Johnston NZ Pty.
Beak & Johnston’s Greenacre unit, which supplies sauces, soups, slow-cooked meats, and other chilled ready meals, is not part of the acquisition.
The Australian Competition and Consumer Commission (ACCC) waved the deal through on 9 April, leaving the Commerce Commission’s approval as the final major hurdle.
The New Zealand regulator said it considered the potential impact on competition in domestic markets for slow cooked meats, chilled and canned soups, chilled and frozen ready-made meals and pies.
Commission Chair Dr John Small said the deal was unlikely to substantially lessen competition in any domestic market.
“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,” Dr Small said.
“We don’t believe that Woolworths would have the ability or incentive to restrict rival retailers’ access to convenience or ready-meals, nor do we consider any attempt to do so would result in a substantial lessening of competition in relevant retail markets. This is because rival grocery retailers could acquire from alternative suppliers across the relevant product categories. This applies to both branded Beak & Johnston products and private label products manufactured by Beak & Johnston,” he added.
Beak & Johnston operates manufacturing facilities in Australia and New Zealand, making chilled and frozen food.
The company markets food under brands including Pitango, Artisano, Ready Chef, Beak & Sons and Strength Meals Co. Beak & Johnston also produces private-label items.
