Elders Merger Raises Monopoly Concerns Among Farmers

Deal News | Mar 13, 2025 | EIN

The proposed merger between Elders, a major player in the Australian agribusiness sector, and its rival Delta Ag, is raising concerns within the farming community about potential monopolistic consequences. Elders operates a vast network of 245 agricultural retail stores across the country and aims to absorb Delta Ag’s 68 outlets, primarily based in Western Australia and New South Wales. Valued at $475 million and announced in November, the merger is currently under review by the Australian Competition and Consumer Commission (ACCC), which has postponed its decision to gather further information. Farmers, who often rotate between Elders and Delta Ag for competitive pricing, fear a lack of choice and higher costs as local independent stores might not sustain under enhanced competition from major players. Various farming associations, including NSW Farmers and Grains Producers Australia, have expressed their opposition to the merger, cautioning against the reduction in competition that could mirror the duopoly challenges of other Australian markets. However, Elders assures a 'light touch' approach to integrating Delta Ag into its operations, aiming to maintain service quality for its clientele.

Sectors

Agribusiness
Retail
Competition law

Geography

Australia – The merger impacts the Australian market, with both Elders and Delta Ag operating across the country, particularly in Western Australia and New South Wales.

Industry

Agribusiness – The article focuses on a merger within the agribusiness sector, specifically pertaining to the distribution of agricultural supplies by companies like Elders and Delta Ag.
Retail – The merger involves the retail operations of agricultural products, affecting local availability and pricing structures.
Competition law – The merger is under review by the ACCC due to concerns about monopolistic practices and competition in the market.

Financials

$475 million – Valuation of the merger deal for Delta Ag's acquisition by Elders.
$1.37 billion – Elders' market valuation.
$670,000 – Average expenditure by Australian farms on chemicals and fertilizer in 2023.

Participants

Name	Role	Type	Description
Elders	Target Company	Company	A leading agribusiness company in Australia, operating 245 agricultural retail stores.
Delta Ag	Selling Company	Company	An agribusiness company running 68 stores, prominently situated in Western Australia and New South Wales.
Australian Competition and Consumer Commission (ACCC)	Regulatory Body	Government	The federal agency reviewing the proposed merger due to competition concerns.
NSW Farmers	Opposition	Charity	A farming association opposing the merger because of competition worries.
Grains Producers Australia (GPA)	Opposition	Charity	An organization representing grains producers, also opposing the merger.
National Rural Independents (NRI)	Potential Beneficiary	Company	Represents 158 independent agricultural retail outlets, potentially benefiting from the merger conditions.