Coca-Cola Amatil Limited - proposed acquisition of Northern Territory bottling rights for products of The Coca-Cola Company from Parmalat Australia Limited

Summary

Coca-Cola Amatil Limited - proposed acquisition of Northern Territory bottling rights for products of The Coca-Cola Company (TCCC) from Parmalat Australia Limited

Market definition

Separate national markets for the manufacture and wholesale supply of carbonated soft drink and wholesale packaged water.

Competition analysis

On 25 January 2005, the ACCC decided not to oppose the proposed acquisition. The parties overlap in relation to the manufacture and supply of carbonated soft drink and wholesale packaged water.

However, because of the respective bottling and licensing relationships between TCCC and the parties, neither party competes with the other in any geographic region in Australia for the sale of carbonated soft drink and wholesale packaged water. Further, most of Parmalat's carbonated soft drink and wholesale packaged water sales are of TCCC branded products. The proposed acquisition therefore represents a bare transfer of market share from Parmalat to CCA in respect of carbonated soft drink and wholesale packaged water in the Northern Territory.

Accordingly, the ACCC concluded that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets.

Merger type

Horizontal

Initiation

Parties