Kellogg (Aust) Pty Ltd - proposed acquisition of Specialty Cereals Pty ltd


  • Kellogg (Aust) Pty Ltd


  • Specialty Cereals Pty ltd


Kellogg Company and Kellogg (Aust.) Pty Ltd (jointly Kellogg) propose to acquire the business of Specialty Cereals Pty Ltd.

Kellogg is a manufacturer, seller and marketer of ready-to-eat cereal and snack foods worldwide. Specialty Cereals is a privately owned ready-to-eat cereal and cereal and confection ingredient manufacturing business based in Sydney.

Market definition

The proposed acquisition was considered in the context of the following markets:

1. The national market for the retail supply of ready-to-eat breakfast cereals; and

2. The national market for the supply of cereal ingredients.

Competition analysis

The ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets.

Factors informing this conclusion included:

1. The low increase in market share as a result of the proposed acquisition;

2. Low barriers to entry evidenced by several recent new entrants; and

3. The existence of several competitors who will continue to provide alternative supply options for customers.


05/08/2008ACCC commenced review under the Merger Review Process Guidelines.
19/08/2008Closing date for submissions from interested parties.
25/08/2008ACCC announced it would not oppose the proposed acquisition.