George Weston Foods is a large vertically integrated flour producer and proposes to acquire the intellectual property, goodwill, and plant and equipment of OPB Milling. OPB Milling is a flour producer which operates out of the Brisbane region.

Market definition

The eastern sea-board and Western Australian markets for the supply and distribution of flour.

Competition analysis

The ACCC decided that, although barriers to entry into the industry appear to be high and imports, or the threat of imports, do not appear to act as a constraint, the acquisition is unlikely to result in a substantial lessening of competition in the eastern sea-board market for the supply and distribution of flour. In reaching this conclusion the ACCC noted that the acquisition will lead to only a small increase in George Weston Foods' market share as OBP Milling has a small, and declining, market share and is not seen as a major competitor.