The Australian Competition and Consumer Commission will not intervene in the acquisition of the Nanda pasta business by Green's Limited, ACCC Chairman, Professor Allan Fels, announced yesterday.
This acquisition represents the second acquisition of a pasta business by Green's, which purchased the Vetta pasta business earlier this year. It will mean that Green's will operate two of the more significant brands of pasta.
"Competition is driven not only by large domestic manufacturers, but also by a number of smaller players and imports", Professor Fels said.
"Following discussions with competitors, customers and importers, the ACCC concluded that it was unlikely that competition would diminish substantially post acquisition. These discussions indicated that the acquisition would be unlikely to result in a significant reduction in competition".
The ACCC found that San Remo would be a strong competitor to Green's.
Also, retail customers advised the ACCC that imports were a viable alternative to domestically manufactured dry pasta. In this regard, the ACCC noted the recent entry of Barilla.
"The Green's acquisition of Nanda represents another example of the ACCC taking into consideration the level of actual and potential import competition faced by Australian businesses", Professor Fels said.
This acquisition represents the second acquisition of a pasta business by Green's, which purchased the Vetta pasta business earlier this year. It will mean that Green's will operate two of the more significant brands of pasta.
"Competition is driven not only by large domestic manufacturers, but also by a number of smaller players and imports", Professor Fels said.
"Following discussions with competitors, customers and importers, the ACCC concluded that it was unlikely that competition would diminish substantially post acquisition. These discussions indicated that the acquisition would be unlikely to result in a significant reduction in competition".
The ACCC found that San Remo would be a strong competitor to Green's.
Also, retail customers advised the ACCC that imports were a viable alternative to domestically manufactured dry pasta. In this regard, the ACCC noted the recent entry of Barilla.
"The Green's acquisition of Nanda represents another example of the ACCC taking into consideration the level of actual and potential import competition faced by Australian businesses", Professor Fels said.