Coca-Cola Amatil (Aust) Pty Ltd - proposed acquisition of Vending Solutions Pty Ltd

Acquirer(s)

  • Coca-Cola Amatil (Aust) Pty Ltd

Target(s)

  • Vending Solutions Pty Ltd

Market definition

The ACCC considered the proposed acquisition in the context of a market for the supply of vending machines for refrigerated non-alcoholic ready-to-drink beverages and snacks in Queensland.

Competition analysis

The ACCC considered that the proposed acquisition was not likely to result in a substantial lessening of competition in the relevant market.

The ACCC considered that post-acquisition, Coca-Cola Amatil would continue to be constrained by existing rivals including PepsiCo (Smiths), Provender, Personalised Vending, Cool Treats, Natvend and a number of small operators.

In addition, barriers to entry and expansion for the supply of vending machines did not appear to be significant, particularly for suppliers seeking to enter or expand into the supply of vending machines to workplace customers.

While the ACCC was mindful of the increased risk of foreclosure to third party beverage manufacturers, the ACCC considered that the proposed acquisition would be unlikely to result in a substantial lessening of competition in any relevant market.

Timeline

DateEvent
15/12/2010ACCC commenced review under the Merger Review Process Guidelines.
14/01/2011Closing date for submissions from interested parties.
15/02/2011ACCC announced it would not oppose the proposed acquisition.