On 11 February 2009, the ACCC announced its decision to oppose the proposed acquisition of Bartter Enterprises Pty Ltd by Baiada Poultry Pty Ltd on the basis that it was likely to substantially lessen competition in markets for the wholesale supply of processed chicken meat.
To address the ACCC's competition concerns, Baiada offered an undertaking under section 87B of the Trade Practices Act, which the ACCC has accepted.
Baiada has agreed to divest certain assets to La Ionica Poultry. The assets to be divested include Bartter’s Geelong processing plant, associated breeding farms and hatcheries, and Bartter’s North Melbourne feed mill.
The undertaking commits Baiada to divest these assets as a condition of the proposed acquisition proceeding.
The undertaking aims to maintain competition through the creation or strengthening of an additional viable, stand alone, independent and long term competitor for the wholesale supply of processed chicken meat products to customers with requirements for large volume purchases across multiple states of Australia, particularly Quick Service Restaurants.
