Sanitarium is seeking to acquire the Vita Brits breakfast cereal brand in Australia currently owned by Nestlé.

The proposed deal was revealed by the Australian Competition and Consumer Commission (ACCC) as the regulator announced it plans to review the transaction.

Otherwise known as the Australian Health and Nutrition Association, Sanitarium owns the Weet-Bix cereal brand in Australia. It manufactures the Vita Brits line on behalf of Nestlé, according to statement from the ACCC.

Vita Brits, meanwhile, sits under Nestlé’s Uncle Tobys label.

“The parties overlap in the national wholesale supply of wheat biscuit cereal products,” the ACCC said, adding that Vita Brits “is a physically similar, rectangular wheat biscuit product to Weet-Bix, made from 99% wholegrain wheat”.

Submissions have been requested by the regulator from “interested parties” who may or may not be opposed to the proposed transaction. A deadline for feedback has been set for 4 October.

“The ACCC’s investigation is focused on the impact that the proposed acquisition would have on competition,” it said.

More specifically, the ACCC added the review will seek to establish “how closely Weet-Bix and Vita Brits compete in the supply of breakfast cereals and the likely impact on prices and product quality post-acquisition”.

A Nestlé spokesperson confirmed it has entered an agreement to sell the Vita Brits brand to Sanitarium, a transaction that is expected to close early next year if cleared by the ACCC.

“In the transition period, we will work closely with Sanitarium to ensure a smooth transition of the Vita Brits listings for our retail partners and loyal Vita Brits consumers,” the spokesperson said.

Just Food also contacted Sanitarium for comment. The company acknowledged the deal is in progress but did not want to provide any further commentary.

Sanitarium is a not-for-profit organisation in Australia wholly owned by the Seventh-day Adventist Church.

As well as Weet-Bix, other products in the range include Weet-Bix Bites, Weet-Bix Gluten Free and Weet-Bix Added Benefits.

The ACCC’s review started on 30 September and is expected to be wrapped up – subject to the feedback requested – on 21 November.

Nestlé’s disposal of the Vita Brits brand comes less than a month since Laurent Freixe was installed as CEO to replace the long-serving Mark Schneider.

The former executive vice president and CEO of Nestlé’s Latin America business took up the role on 1 September.

Another asset sale was also announced this month – the Cremora creamers line in South Africa. French dairy giant Lactalis is the acquirer in a deal struck with Nestlé for an undisclosed sum.