Regal Cream Products Pty Limited (Bulla Dairy Foods) - proposed acquisition of Cadbury ice cream range from Fonterra Co-operative Group Limited

Acquirer(s)

  • Regal Cream Products Pty Limited

Target(s)

  • Fonterra Co-operative Group Limited

Summary

Bulla proposed to acquire intellectual property from Fonterra in relation to:
- the Brownes tub ice cream range in Western Australia;
- the Authentic Ice Cream brand of ice cream sandwiches nationally; and
- the licence to produce Cadbury ice cream nationally in Australia and 500 Cadbury branded freezers located in route trade stores.

In addition to the intellectual property, Bulla proposed to also acquire the Fonterra plant and equipment used to produce the Brownes tub ice cream range and the Authentic Ice Cream brand of ice cream sandwiches.

Market definition

The ACCC considered national markets for the wholesale supply of ice cream, ice confection and frozen yoghurt products.

Competition analysis

The ACCC found that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. In reaching its conclusion the ACCC noted that the merged entity would not have the ability and incentive to impose a unilateral price rise above competitive levels as it would be constrained by existing effective competitors.

Timeline

DateEvent
03/06/2009ACCC commenced review under the Merger Review Process Guidelines.
18/06/2009Closing date for submissions from interested parties.
06/07/2009ACCC announced it would not oppose the proposed acquisition.