Australia regulator waves through Woolworths’ Beak & Johnston deal

Woolworths has received the go-ahead from the Australian contention regulator to proceed with its projected acquisition of Beak & Johnston.

The Australian Competition and Consumer Commission (ACCC) said contiguous (9 April) it “will not oppose” the deal.

The acquisition involves Australian grocer Woolworths purchasing the 77% involvement successful B&J City Kitchen Pty and Alors Holdings Pty that it does not presently own, on with 100% of Beak & Johnston NZ Pty.

However, Beak & Johnston's Greenacre unit, which supplies sauces, soups, slow-cooked meats, and different chilled acceptable meals, is not portion of the acquisition.

Beak & Johnston operates manufacturing facilities successful Australia and New Zealand, producing chilled and frozen food.

The institution markets its products nether brands including Pitango, Artisano, Ready Chef, Beak & Sons and Strength Meals Co. It besides produces private-label items.

The ACCC reviewed whether the acquisition could pb Woolworths – Australia’s largest nutrient retailer – to prioritise Beak & Johnston’s products implicit those of rival suppliers, perchance harming contention successful the acceptable meals segment.

Its probe recovered that respective ample acceptable repast suppliers with comparable capabilities to Beak & Johnston would stay successful the market, including immoderate that bash not proviso Woolworths.

Additionally, smaller producers connection products "for niche merchandise segments", the regulator added.

ACCC Commissioner Dr Philip Williams said: “Our probe recovered that portion Woolworths has important bargaining powerfulness successful its dealings with acceptable repast suppliers, successful this lawsuit it was improbable the acquisition would person a important anti-competitive effect.

“Rival suppliers of acceptable meals volition proceed to person entree to different supermarkets and convenience stores. Ready repast suppliers tin besides administer done different channels, specified arsenic nutrient work wholesaling and direct-to-consumer models.”

The New Zealand Commerce Commission (NZCC) is assessing a akin clearance exertion submitted by Woolworths successful January.

In February, the NZCC published the connection of preliminary issues regarding the acquisition.

An anonymous stakeholder expressed apprehension the woody could “substantially lessen competition” successful the wholesale and retail markets crossed assorted nutrient types specified arsenic slow-cooked meats, chilled soups, and plant-based nutrient alternatives.

The ACCC's connection contiguous noted the NZCC is considering a clearance exertion related to Woolworths' projected acquisition of Beak & Johnston.

"Australia regulator waves done Woolworths’ Beak & Johnston woody " was primitively created and published by Just Food, a GlobalData owned brand.