Acquirer: Arnotts Biscuits Ltd; Target: Snack Foods Ltd

Summary

Arnott's Biscuits Limited proposes to acquire Snack Foods Limited

Market definition

The National Markets for the manufacture and distribution of: salty snacks; biscuits; and chocolate confectionery.

Competition analysis

Salty snacks
The Commission considered that the proposed acquisition was unlikely to lead to a substantial lessening of competition in the market for salty snacks due to:
- continued competition from large competitors; and
- the countervailing power exercised by the parties' large customers.

Biscuits
The Commission considered that it appeared that the proposed acquisition would not substantially lessen competiton due to:
- the target's market share appeared to be of a size that may not be considered to be substantial
- the Commission considered that there is a real potential of entry by international biscuit suppliers that is likely to restrain the post-acquisition entity; and
- the countervailing power exercised by the parties' large customers.

Chocolate confectionary
The Commission considered that it appeared that the parties had small market shares and accordingly, the Commission considered that a substantial lessening of competition was unlikely.

Merger type

Horizontal

Guidelines thresholds

Crossed

Imports above 10%

No

Initiation

Parties

ANZSIC code

2179