National Foods Ltd - proposed acquisition of Berri Ltd


Acquisition of remaining 49% interest in Berri Limited by National Foods Limited.

Market definition

The relevant market is considered to be the national market for the manufacture and wholesale supply of fruit beverages.

Competition analysis

The ACCC has previously considered the acquisition of Berri by San Miguel (Otcober 2004) and, subsequently, the acquisition of National Foods by San Miguel (March 2005). Competitive overlap between merger parties was considered to be limited in both transactions. In assessing the impact of both transactions the ACCC carefully considered the implications of San Miguel and later both San Miguel and National Foods developing economies of scope and the potential for portfolio effects to arise as a result of the proposed acquisitions. San Miguel's historical and existing relationship with Coca Cola has also been considered in the context of assessing these acquisitions.

In August 2005 the ACCC indicated that it would not intervene in the transfer of the 51% interest in Berri from San Miguel to its wholly owned subsidiary, National Foods. It was considered at the time that, as the transfer of shares was simply part of an internal corporate restructure, there would be no change in effective corporate control. Based upon this factor, the ACCC formed the view that a substantial lessening of competition was unlikely to occur in any market.

For the reasons outlined above the ACCC considers that the acquisition of the remaining 49% of Berri by National Foods is unlikely to result in a substantial lessening of competition.

Merger type