Photo: Supplied / Woolworths
- Woolworths is cleared to buy the ready-meal maker Beak & Johnston
- The Commerce Commission is satisfied the acquisition is unlikely to "substantially lessen competition"
- The decision comes at a time of increased scrutiny of the grocery market
Supermarket operator Woolworths' proposal to acquire ready-meal maker Beak & Johnston has been green-lit by the competition regulator.
The Commerce Commission said it was satisfied the acquisition was unlikely to substantially lessen competition in any New Zealand market.
Beak & Johnston produces chilled and frozen ready-made meals, pies, chilled and canned soups and slow-cooked meats. Its brands includes Artisano, Beak and Sons, Pitango, Ready Chef and Strength Meals Co.
Commission chair John Small said the deal was "unlikely" to lead to the merged entity refusing to supply Beak & Johnston products to rival retailers.
"We don't believe that Woolworths would have the ability or incentive to restrict rival retailers' access to convenience or ready-meals, nor do we consider any attempt to do so would result in a substantial lessening of competition in relevant retail markets," Small said.
The decision came at a time of increased scrutiny of the big two supermarket operators' (Foodstuffs and Woolworths) power over the grocery market.
"Our investigation considered whether there was a risk of Woolworths either delisting the products of rival suppliers to Beak & Johnston or compromising the attractiveness of their products," Small said.
"Ultimately, we didn't consider delisting of rival suppliers to be a likely scenario in this case, as Woolworths is unlikely to want to reduce the range of products it sells in these categories, which are generally projected to grow."
