SummaryOn 9 November 2009, Kraft Foods Inc announced the terms of an offer to acquire the whole of the issued and to be issued share capital of Cadbury plc.
Market definitionThe ACCC considered the proposed acquisition in the context of a national market for the supply of chocolate confectionery.
Competition analysisThe ACCC concluded that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant market. The ACCC considered that the proposed acquisition would result in a marginal increase in concentration and that the merged firm would continue to be constrained by other significant suppliers of chocolate confectionery in Australia. The ACCC also considered that the merged firm would be unlikely to have any increased ability or incentive to leverage its strong brands such as 'Vegemite' or 'Cadbury Dairy Milk' to foreclose competition in related markets.