National Foods Limited - proposed acquisition of Lactos Pty Ltd

Summary

National Foods Limited - proposed acquisition of Lactos Pty Ltd

Market definition

The relevant markets are: (i) the national market for the manufacture and wholesale supply of cheese; (ii) the Tasmanian market or regional Tasmanian markets for raw milk acquisition; and (iii) the Tasmanian market for fresh milk supply.

Competition analysis

(i) National market for the manufacture and wholesale supply of cheese:
no competition issues arise given the merged entity's small market share and the existence of significant import competition.
(ii) Market(s) for the acquisition of raw milk in Tasmania:
if regional markets exist, no competition concerns arise because there is no overlap between NFL's and Lactos' sources of raw milk supply. If a state market exists, no competition concerns arise because market inquiries indicated that there are alternative significant acquirers of raw milk.
(iii) Tasmanian fresh milk market:
Lactos supplies raw milk to Betta, National Food's principal competitor in the Tasmanian fresh milk market. However, no competition concerns arise as market inquiries indicated that, if needed, alternative sources of raw milk supply could be found.
Consequently, the ACCC considers that the proposed acquisition is unlikely to substantially lessen competition in any relevant markets.

Merger type

Horizontal

Initiation

Parties