Undertaking given by Nutrien Ltd and Agrium SP Holdings Pty Limited - re Landmark's proposed acquisition of Ruralco

Company or individual details

  • Nutrien Ltd
  • Agrium SP Holdings Pty Limited
    146 674 400

Undertaking

On 22 August 2019, the ACCC announced it had accepted an undertaking (the Undertaking) given by Nutrien Ltd and its subsidiary Agrium SP Holdings Pty Limited pursuant to s 87B of the Competition and Consumer Act 2010 (Cth) in connection with Nutrien's proposal to acquire (through its Australian business Landmark) all issued shares of Ruralco Holdings Limited (the Proposed Acquisition).  

The ACCC concluded that, in the absence of the Undertaking, the Proposed Acquisition would have the effect, or be likely to have the effect, of substantially lessening competition in the markets for the retail supply of rural merchandise in:

  1. Alice Springs, Northern Territory and surrounding areas;
  2. Broome, Western Australia and surrounding areas; and
  3. Hughenden, Queensland and surrounding areas;

(each a Local Market and together Local Markets).

The ACCC is concerned that, in each Local Market, the Proposed Acquisition would remove one of very few competitors to Landmark in the supply of rural merchandise and therefore be likely to lead to increased prices and/or decreased service levels for consumers in those areas.

The objective of the Undertaking is to address the ACCC’s competition concerns as set out above that may otherwise occur as a consequence of the Proposed Acquisition. The Undertaking aims to achieve this objective by placing obligations on Nutrien to:

  1. ensure that each of the Divestiture Businesses are sold to an ACCC Approved Purchaser;
  2. create or strengthen a viable, effective, stand-alone, independent and long-term competitor in the retail supply of rural merchandise in each Local Market;
  3. ensure the purchaser of each Divestiture Business has all the necessary associated assets and rights to compete effectively with Nutrien in the retail supply of rural merchandise in each Local Market;
  4. maintain the economic viability, marketability, competitiveness and goodwill of the Divestiture Businesses prior to divestiture; and
  5. provide for the effective oversight of Nutrien’s compliance with the Undertaking.