Nestlé S.A. - variation - s.87B undertaking

On 18 April 2013, the ACCC consented to a Variation to the section 87B Undertaking given by Nestlé S.A. on behalf of itself and its subsidiaries, Nestlé Australia Ltd, and Duke Holdco Pty Ltd (together, Nestlé) and accepted by the ACCC on 22 November 2012 (the Undertaking) (the Variation). The Undertaking was accepted by the ACCC in order to resolve competition concerns that would otherwise have resulted from the acquisition of Pfizer Nutrition, a global infant nutrition business, from Pfizer Inc.

The purpose of the Variation is to:

1. incorporate ring fencing measures in relation to information obtained by Nestlé relating to a licence agreement Nestlé would enter into with the approved purchaser (referred to as the Divestiture Products Trademark Licence in the Undertaking and Variation); and
2. require Nestlé to take all steps to ensure that any licence agreement entered into with the approved purchaser pursuant to clause 5.1(b)(i) of the Undertaking does not terminate as a result of a breach of that licence agreement by Nestlé and to include a procedure for approval by the ACCC of termination of any such licence agreement by Nestlé.