San Miguel Corporation - proposed acquisition of National Foods Limited


On 1 March 2005 the ACCC advised San Miguel that it would not oppose the proposed acquisition.

Market definition

For competition analysis purposes the ACCC considered the following markets:
1. the regional market for raw milk;
2. the market for fresh milk on a state basis;
3. the market for flavoured milk on a state basis;
4. the national market for cream;
5. the national market for dairy deserts and yogurt; and
6. the national market for cheese.

Competition analysis

San Miguel's interests in Australia include Berri fruit juice and J Boag and Sons brewery. National Foods Limited is a dairy producer. The ACCC formed the view that a substantial lessening of competition in a market was unlikely to occur due to the fact that San Miguel does not currently have interests in dairy in Australia, that major customers and competitors would have countervailing power in the relevant markets and the ACCC was assured by San Miguel that it would not enter into any contract, arrangement or understanding with Coca Cola Amatil and/or The Coca Cola Company relating to the manufacture, distribution, marketing or supply of any non-alcoholic beverage in Australia, including with regard to National Foods.