Metcash Trading Limited - acquisition of Confectionery Distributors (trading as CD's the Distributors)

Summary

Metcash Trading Limited's acquisition of Confectionery Distributors, which trades as CD's the Distributors (CD's).

Market definition

For the purposes of this competition assessment the relevant market was considered to be the Western Australia market for the wholesale distribution of confectionery and snack foods to outlets other than supermarkets.
If a broader product or geographic market is adopted, the increase in Metcash's market share is so insignificant that no substantial lessening of competition would be likely.

Competition analysis

The Commission particularly noted the continuing competition from existing players, low barriers to entry and possibility of supply side substitution as well as the countervailing power of some customers. Consequently, the Commission formed the view that no substantial lessening of competition was likely.

Merger type

Horizontal

Initiation

Complaint