The Australian Competition and Consumer Commission will not intervene in the acquisition of the National Foods juice business by Berri Limited, ACCC Chairman, Professor Allan Fels, announced today.
"Although the merger combines two of the larger fruit juice and fruit drink manufacturers in Australia, market inquiries indicated it is a highly competitive market with a high degree of price competition and product innovation.
"Competition is driven not only by the merger parties but also by a number of other smaller players.
"The ACCC considered it unlikely that competition would diminish substantially post-merger.
"The ACCC has conducted extensive market inquiries about consolidation in the juice industry generally and this matter specifically.
"The ACCC spoke to citrus growers, fruit juice, fruit drink and cordial manufacturers as well as major customers.
"These discussions indicated that the acquisition would be unlikely to result in a significant reduction in competition in the relevant market. The ACCC also found that entry into the market has occurred recently. Barriers to entry are relatively low. Such low barriers should ensure the industry remains competitive after the merger.
"Information obtained by the ACCC indicated that the merger would be unlikely to have a negative impact on orange growers as they will still have many juice processors seeking their produce".
"Although the merger combines two of the larger fruit juice and fruit drink manufacturers in Australia, market inquiries indicated it is a highly competitive market with a high degree of price competition and product innovation.
"Competition is driven not only by the merger parties but also by a number of other smaller players.
"The ACCC considered it unlikely that competition would diminish substantially post-merger.
"The ACCC has conducted extensive market inquiries about consolidation in the juice industry generally and this matter specifically.
"The ACCC spoke to citrus growers, fruit juice, fruit drink and cordial manufacturers as well as major customers.
"These discussions indicated that the acquisition would be unlikely to result in a significant reduction in competition in the relevant market. The ACCC also found that entry into the market has occurred recently. Barriers to entry are relatively low. Such low barriers should ensure the industry remains competitive after the merger.
"Information obtained by the ACCC indicated that the merger would be unlikely to have a negative impact on orange growers as they will still have many juice processors seeking their produce".