The Australian Competition and Consumer Commission will not oppose the proposed acquisition of Neverfail Springwater Limited by Coca-Cola Amatil Limited, ACCC Chairman, Professor Allan Fels, announced today.
Neverfail is Australia’s largest direct deliverer of bulk bottled water, with operations in all states except the Northern Territory. It also wholesales packaged water products in Western Australia, New South Wales, Victoria and Queensland under the brand Neverfail and in South Australia under the Piccadilly Natural Spring brand.
Coca-Cola Amatil Limited bottles and wholesales packaged water under the brands Mount Franklin, Kirks, Pump and Deep Spring. It does not operate a direct delivery, bulk bottled water business.
"The absence of any market overlap between the firms in relation to direct delivered, bulk bottled water is one of the primary reasons for the ACCC's conclusion that the proposed acquisition would not substantially lessen competition", Professor Fels said.
"The ACCC also considered whether the proposed acquisition would lead to a substantial lessening of competition in the bottling and distribution of wholesale packaged water.
"The ACCC noted that Neverfail presently accounts for a very small percentage of the national wholesale packaged water market and there would remain a number of alternative suppliers.
"Following market inquiries, the ACCC decided that the proposed acquisition is unlikely to substantially lessen competition in relation to bulk bottled water or wholesale packaged water.
"Accordingly, the ACCC decided to not intervene in the proposed acquisition".