Tassal Group Limited - proposed acquisition of the Superior Gold brand from National Foods

Summary

Tassal Group Limited proposes to acquire the Superior Gold Brand from National Foods Limited

Market definition

The proposed acquisition was considered in the context of the national market for the wholesale supply of packaged smoked salmon.

Competition analysis

On 29 January 2008, the ACCC formed the view that the proposed acquisition would be unlikely to result in a substantial lessening of competition. Factors informing this conclusion included:
- potential import competition would appear likely to be able to penetrate the Australian market in a timely and effective manner;
- retailers would be likely to have the ability to switch to other suppliers;
- barriers to entry and expansion appear to be relatively low; and
- the merged entity would continue to be constrained by the countervailing power of retailers to source branded products and/or a house brand.