George Weston Foods Limited - proposed acquisition of KR Castlemaine Foods Pty Limited
Type of assessment
Informal Review
Reference
30577
Acquirer(s)
George Weston Foods Limited
Target(s)
KR Castlemaine Foods Pty Ltd
Industry
Smallgoods meat manufacturing and fresh pig meat
Summary
George Weston Foods Limited proposed to acquire KR Castlemaine Foods Pty Limited.
Outcome of assessment
Not opposed
Total review days *
32
Commenced public review
5th February 2008
Date completed
20th March 2008
Market definition
The ACCC considered the proposed acquisition in the context of each of the following markets:
- the Victorian market for the acquisition of pigs;
- the national wholesale market for fresh pig meat; and
- the national wholesale smallgoods market which consists of pre-packed products and bulk products.
Competition analysis
On 20 March 2008, the ACCC formed the view that the proposed acquisition would be unlikely to result in a substantial lessening of competition in any of the relevant markets. Factors informing this conclusion included:
- the availability of substitutes from other competitors such as Hans and Primo and smaller sized competitors such as D'Orsogna, Ridders Fresh and Bertocchi;
- barriers to entry and / or expansion are likely to be surmountable as demonstrated by smaller players which have entered the market on a smaller level and expanded their geographical coverage, product range and types of customers; and
- the major grocery stores are able to exercise countervailing power.
Review timeline
Date
Event
5th February 2008
Merger parties announce the proposed acquisition.
5th February 2008
ACCC commenced review under the Merger Review Process Guidelines.
29th February 2008
Closing date for submissions from interested parties.
20th March 2008
ACCC announced it would not oppose the proposed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
