The Australian Competition and Consumer Commission will not oppose the proposed acquisition of Parit Pty Limited, trading as Peats Ridge, by Coca-Cola Amatil Limited, Acting ACCC Chairman, Mr Sitesh Bhojani, announced today.
Peats Ridge bottles and wholesales packaged water products under the brand names Peat Ridge Springs, Mount White and Blue Beau. Peats Ridge does not supply direct delivered, bulk bottled water and the overwhelming majority of Peats Ridge's sales of packaged water are to supermarkets and other food stores.
CCA bottles and wholesales packaged water nationally under the brands Mount Franklin, Kirks, Pump and Deep Spring.
"The ACCC conducted market enquiries and considered whether the proposed acquisition would lead to a substantial lessening of competition in the bottling and distribution of wholesale packaged water", Mr Bhojani said.
"The primary reason for the ACCC's conclusion that the proposed acquisition would not substantially lessen competition was the lack of significant sales by Peats Ridge to the highly concentrated route distribution channels. Route distribution includes convenience stores, milk bars, petrol stations, vending machines, and on-premise distribution such as restaurants, cafes, pubs, arenas and cinemas. "Accordingly, the ACCC decided to not intervene in the proposed acquisition.
"However, given the strength of CCA in the route distribution channels generally, the ACCC will closely examine any future proposals by CCA to acquire other beverage businesses".