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You Can Bake It Franchising Pty Ltd (the company) is incorporated in Western Australia and carries on a business in Australia as a franchisor owning and operating retail stores supplying branded bread mixtures and associated home baking products.
In November 2004 Fonterra lodged a submission in support of its request for an informal clearance by the ACCC of its takeover offer of National Foods Limited.
The ACCC identified a number of competition concerns associated with the proposal.
Fonterra proffered an undertaking that certain arrangements are entered into with an Approved purchaser.
Those arrangements include:
the sale of the “Brownes” brand;
the sale of elements of the distribution system in Western Australia as is required by the Approved Purchaser to service the sale of “Brownes” milk products;
providing for toll manufacturing or the sale of either the Balcatta or Bentley processing plant in Western Australia;
using its best endeavours to transfer a private label contract with a Major Supermarket to the Approved Purchaser; and
using its best endeavours to transfer a number of existing raw milk contracts with Western Australian dairy farmers to the Approved Purchaser.