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ACCC gives Goodman Fielder takeover bid the go ahead

The Australian Competition and Consumer Commission (ACCC) has announced that it will not be opposing the proposed takeover of Goodman Fielder by Wilmar and First Pacific.

Both companies currently overlap in the supply of edible oils including canola, sunflower and soybean oil to Australian retailers. Goodman Fielder is the largest supplier of branded packaged edible oils to retailers, while Wilmar supplies imported packaged oils which are sold in supermarkets under their private labels.

“The ACCC determined that, following the proposed acquisition, Wilmar and Goodman Fielder would continue to be competitively constrained by alternative existing and potential suppliers,” said ACCC chairman, Rod Sims.

“Packaged vegetable oil can be readily imported from international suppliers. Wilmar currently supplies oil from its offshore facilities and there are other international suppliers capable of supplying the Australian market.”

“Industry feedback also suggested that packaged vegetable oil is considered a commodity product with low levels of brand loyalty, making it easier for retailers by bypass their existing suppliers.

Sims also added that the proposed acquisition was unlikely to raise competition concerns in any other markets in which both businesses operate.  Wilmar is a leading agribusiness group in Asia with its key Australian business in the sugar and edible oils markets, while Frist Pacific is an investment management and holding company operating in Australia through Indofood, importing and selling instant noodles, pasts and vegetables.

Goodman Fielder initially accepted the takeover bid by Wilmar and First Pacific in July this year.

 

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