The Australian Competition and Consumer Commission will not intervene in the proposed acquisition of Good Stuff Bakery by George Weston Foods Limited.
ACCC Chairman, Mr Graeme Samuel, said the proposed acquisition is unlikely to substantially lessen competition under section 50 of the Trade Practices Act 1974.
Good Stuff Bakery wholesales plant-baked bread in various areas of southern Queensland and northern New South Wales.
"Market inquiries confirmed that Good Stuff Bakery is a vigorous and effective competitor, supplying 'price-fighting' bread to small retailers including independent supermarkets, fruit barns and other route trade retailers," Mr Samuel said.
"However, the removal of Good Stuff Bakery, as an independent supplier, is unlikely to substantially lessen competition for the wholesale supply of bread in southern Queensland and northern New South Wales due to the presence of three other plant bakers with significant capacity to increase supply."
The basis upon which the ACCC has reached its decision will be outlined in a Public Competition Assessment which will be issued in due course and will be available on the ACCC website.