New Zealand’s Commerce Commission has granted clearance for Woolworths’ proposed acquisition of Beak & Johnston.
The regulator said it had considered the potential impact of the acquisition on competition in national markets for slow-cooked meats, chilled and canned soups, chilled and frozen ready-made meals, and pies.
After the review, it concluded that the deal is unlikely to substantially lessen competition in any New Zealand 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,” explained Commerce Commission chair John Small.
“We saw no evidence to indicate the proposed acquisition would materially change decisions on the ranging, shelf-positioning or pricing of private label and Beak & Johnston branded products in Woolworths stores in a way that would substantially lessen competition,” Small added.
The news came after the Australian Competition and Consumer Commission gave green light to the deal earlier this month after finding there were no competition concerns.
The Beak & Johnston brands that will be included in the proposed acquisition are Pitango, Artisano, Strength Meals Co, Simmone Logue and Pasta Master.
