Nestle Australia Limited proposes to acquire The Uncle Tobys Company Pty Ltd and Uncle Tobys Foods Pty Ltd

Summary

Nestle Australia Limited proposes to acquire The Uncle Tobys Company Pty Ltd and Uncle Tobys Foods Pty Ltd

Market definition

The ACCC considered the impact of the acquisition on competition in a nutritious snacks market and a breakfast cereals market. However, it recognised that these markets may be too narrowly defined.

Competition analysis

The ACCC considered that the acquisition would be unlikely to substantially lessen competition in markets for nutritious snacks and breakfast cereals as market concentration would change only minimally (given Nestle Australia's small pre-acquisition market shares).

While wider markets might include other Nestle products, the ACCC was satisfied that such markets would also be likely to include a substantial range of competitor-products as well. Consequently, adopting wider markets would be unlikely to expose competition concerns.

Merger type

Horizontal

Initiation

Parties