Competition Commission clears trans-Tasman dairy merger
AUSTRALIA/NEW ZEALAND –, The Australian Competition and Consumer Commission (ACCC) has given the all-clear to the proposed merger of Bonlac Foods and the New Zealand Dairy Board.
After consultation with a range of market participants, including ingredient suppliers, manufacturers and retailers, the ACCC decided that the merged entity would still face competition from a number of other manufacturers.
It was also considered that the ability of manufacturers to switch product mixes and the impact of international dairy prices would be likely to constrain the prices charged by the newly formed company.
The venture will be owned 50/50 by both businesses and will offer further opportunities to market and sell their processed dairy products to wholesalers and retailers (for merger details see connectingdairy news number 13).
