The Australian Competition and Consumer Commission will not oppose Coca-Cola Amatil's (CCA) proposed acquisition of SPC Ardmona, ACCC Chairman, Mr Graeme Samuel said today.
CCA is involved in the manufacture, distribution and marketing of non-alcoholic beverages. SPC Ardmona processes and supplies canned fruit and vegetables, fruit snacks, spreads and other food products as well as branded and industrial fruit juice products.
Mr Samuel said the proposed acquisition is unlikely to substantially lessen competition for the acquisition of deciduous canning fruit or canning tomatoes by SPC Ardmona as there is no overlap between the parties and CCA has indicated to growers and the ACCC that it will maintain the Grower Liaison Committee.
"Likewise, the acquisition is unlikely to raise competition concerns in relation to the supply of packaged food products as there is no overlap between the merger parties.
"In relation to SPC Ardmona's supply of branded fruit beverages, the ACCC considered the proposed acquisition unlikely to substantially lessen competition on the basis that the fruit beverages supplied by SPC Ardmona are sold through grocery stores and, importantly, do not compete for cooler space in the more concentrated non-grocery trade channels.
"In regard to SPC Ardmona's supply of industrial products, the ACCC considered that the merged firm would be likely to be constrained by alternative supply from domestic and international producers", Mr Samuel said.
The acquisition remains subject to SPC Ardmona shareholder and court approval.