Acquirer: Baiada Poultry Pty Ltd; Target: Eatmore Poultry Pty Ltd

Acquirer(s)

  • Baiada Poultry Pty Ltd

Target(s)

  • Eatmore Poultry Pty Ltd

Summary

Baiada, a chicken processor, acquired the shares in Eatmore, a competitor, on Friday 28 June 2002.

Market definition

The parties submitted that the relevant market for the purposes of the acquisition is the processed chicken market in Eastern Australia. Previously, the Commission has considered the relevant market to be the South East Australia market. The Commission found that an SLC is not likely on either market definition.

Competition analysis

The Commission decided not to intervene in the acquisition.

In reaching this decision the Panel noted that there are currently two main processors (Inghams and Bartter/Steggles) operating in the industry. This acquisition has strengthened Baiada's position as the third largest market participant. In addition, There are over 20 small to medium processors with smaller market shares.

In this context, this acquisition is unlikely to have the effect of substantially lessening competition.

Merger type

Horizontal

Guidelines thresholds

Crossed

Imports above 10%

Unknown

Initiation

Complaint

ANZSIC code

0141