Beak & Johnston Acquisition Cleared by Commerce Commission

In an important decision, the Commerce Commission has given the green light for Woolworths Group Limited to acquire all shares of Beak & Johnston Holdings Pty Ltd, a key player in the convenience and ready-meals market in New Zealand. The Commission thoroughly investigated potential impacts of this acquisition on national markets encompassing various categories like slow cooked meats, soups, and ready-made meals. The transaction, after careful consideration, was deemed unlikely to impede competition among New Zealand's grocery retailers. Despite Woolworths’ substantial retail presence, the acquisition won't significantly lessen market competition. This is attributed to the availability of alternative suppliers for both Beak & Johnston's branded products and private label manufacturing. The Commission found no substantial risk of anti-competitive behaviors, such as delisting of rival suppliers’ products or attempts at restricting market accessibility for competitors. Summary findings indicate that while Woolworths might increase the range of Beak & Johnston products, this shift is unlikely to harm competitive dynamics due to the overall projected growth in the convenience meals segment. Moreover, the decision highlights that each acquisition is evaluated on its individual circumstances, ensuring a tailored regulatory assessment.