Target(s)
- Specialty Cereals Pty ltd
Summary
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.
Timeline
| Date | Event |
|---|---|
| 05/08/2008 | ACCC commenced review under the Merger Review Process Guidelines. |
| 19/08/2008 | Closing date for submissions from interested parties. |
| 25/08/2008 | ACCC announced it would not oppose the proposed acquisition. |