The Australian Competition and Consumer Commission today released a Statement of Issues on Heinz’s proposed acquisition of Rafferty’s Garden.
The Statement of Issues seeks further information on certain competition issues which have arisen from the ACCC’s review to date.
“The ACCC’s preliminary view is that the proposed acquisition would result in the combination of the two largest suppliers of wet and dry infant food in Australia and would remove Rafferty’s Garden as one of Heinz’s closest and most vigorous and effective competitors in the wet and dry infant food markets,” ACCC Chairman Rod Sims said.
“The ACCC is therefore investigating whether the removal of Rafferty’s Garden as a competitor would be likely to substantially lessen competition, paying particular attention to the height of barriers to entry or expansion and the degree of supermarket countervailing power,” Mr Sims said.
The ACCC invites further submissions from the market in response to the Statement of Issues by 28 February 2013.
Consequently, the ACCC’s final decision will be deferred until 21 March 2013.
The Statement of Issues will be available on the public mergers register on the ACCC’s website.
Submissions can be sent by email to the ACCC at mergers@accc.gov.au.