Metcash Trading Limited - completed acquisition of Kelly's Providores

Acquirer(s)

  • Metcash Trading Limited

Target(s)

  • Kelly's Providores

Summary

Metcash has acquired Kelly's Providores, a food service produce wholesaler in New South Wales.

Market definition

The ACCC considered the competitive effects of the completed acquisition in the context of the market for the wholesale supply of fresh produce to the food service channel in central/southern New South Wales/Australian Capital Territory.

However, the ACCC recognised that the results of the analysis would be unchanged, regardless of the market definition adopted.

Competition analysis

The ACCC formed the view that the completed acquisition was unlikely to substantially lessen competition in the relevant market. Factors informing this conclusion included:
- that there would be a small degree of horizontal aggregation as a result of the completed acquisition;
- that the merged entity would continue to be constrained by a large number of alternate suppliers; and
- barriers to entry and expansion appeared to be low.

Timeline

DateEvent
27/04/2009Metcash advised the ACCC of the completed acquisition.
25/05/2009ACCC commenced review under the Merger Review Process Guidelines.
09/06/2009Closing date for submissions from interested parties.
15/07/2009ACCC announced it would not oppose the completed acquisition.