Acquirer(s)

  • Kellogg (Aust) Pty Ltd

Target(s)

  • Specialty Cereals Pty ltd

Summary

Kellogg Company and Kellogg (Aust.) Pty Ltd (jointly Kellogg) propose to acquire the business of Specialty Cereals Pty Ltd.

Kellogg is a manufacturer, seller and marketer of ready-to-eat cereal and snack foods worldwide. Specialty Cereals is a privately owned ready-to-eat cereal and cereal and confection ingredient manufacturing business based in Sydney.

Market definition

The proposed acquisition was considered in the context of the following markets:

1. The national market for the retail supply of ready-to-eat breakfast cereals; and

2. The national market for the supply of cereal ingredients.

Competition analysis

The ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets.

Factors informing this conclusion included:

1. The low increase in market share as a result of the proposed acquisition;

2. Low barriers to entry evidenced by several recent new entrants; and

3. The existence of several competitors who will continue to provide alternative supply options for customers.

Timeline

Date Event

ACCC commenced review under the Merger Review Process Guidelines.

Closing date for submissions from interested parties.

ACCC announced it would not oppose the proposed acquisition.