Regal Cream Products Pty Limited (Bulla Dairy Foods) - proposed acquisition of Cadbury ice cream range from Fonterra Co-operative Group Limited
Type of assessment
Informal Review
Reference
37401
Acquirer(s)
Regal Cream Products Pty Limited
Target(s)
Fonterra Co-operative Group Limited
Industry
Dairy
Summary
Bulla proposed to acquire intellectual property from Fonterra in relation to:
- the Brownes tub ice cream range in Western Australia;
- the Authentic Ice Cream brand of ice cream sandwiches nationally; and
- the licence to produce Cadbury ice cream nationally in Australia and 500 Cadbury branded freezers located in route trade stores.
In addition to the intellectual property, Bulla proposed to also acquire the Fonterra plant and equipment used to produce the Brownes tub ice cream range and the Authentic Ice Cream brand of ice cream sandwiches.
Outcome of assessment
Not opposed
Total review days *
23
Commenced public review
3rd June 2009
Date completed
6th July 2009
Market definition
The ACCC considered national markets for the wholesale supply of ice cream, ice confection and frozen yoghurt products.
Competition analysis
The ACCC found that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. In reaching its conclusion the ACCC noted that the merged entity would not have the ability and incentive to impose a unilateral price rise above competitive levels as it would be constrained by existing effective competitors.
Review timeline
Date
Event
3rd June 2009
ACCC commenced review under the Merger Review Process Guidelines.
18th June 2009
Closing date for submissions from interested parties.
6th July 2009
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.
