Goodman Fielder acquisition unopposed by ACCC

The Australian Competition and Consumer Commission (ACCC) says it will not oppose the acquisition of Goodman Fielder by Wilmar and First Pacific.

Both Wilmar and Goodman Fielder supply packaged edible oils to Australian retailers. The ACCC’s public review focused on whether, as a result of the proposed acquisition, Wilmar and/or Goodman Fielder would be able to raise the prices of packaged vegetable oils.

“The ACCC determined that, following the proposed acquisition, Wilmar and Goodman Fielder would continue to be competitively constrained by alternative existing and potential suppliers,” ACCC Chairman Rod Sims said.

“Packaged vegetable oil can be readily imported from international suppliers. Wilmar currently supplies oil from its offshore facilities and there are other international suppliers capable of supplying the Australian market.

“Industry feedback also suggested that packaged vegetable oil is considered a commodity product with low levels of brand loyalty, making it easier for retailers to bypass their existing suppliers.”

The ACCC also determined that the proposed acquisition was unlikely to raise competition concerns in any other markets in which Goodman Fielder or Wilmar are active.