Macadamia Processing Co Ltd - proposed joint venture with Consolidated Nuts (Australia) Pty Ltd

Summary

Macadamia Processing Co Ltd (MPC) and Consolidated Nuts (Australia) Pty Ltd (CNA) propose to jointly develop a new facility for the processing of macadamia nuts in shell along with a macadamia kernel wholesaling entity.

Market definition

The ACCC considered the competitive effects of the proposed acquisition in the context of the following markets:
- the market for the acquisition of macadamia nuts in shell, encompassing the growing region in NSW and Queensland; and
- the national market for the supply of macadamia kernel.

Competition analysis

The ACCC concluded that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets. In forming this view, the ACCC had regard to the following factors:

- in the acquisition market, a number of processors would remain in the market who would act as a competitive constraint on the ability of the joint venture to reduce the prices paid to growers of macadamia nuts in shell; and

- in the wholesale market, the ability of the joint venture to increase prices would be constrained by a number of rival vertically integrated wholesale suppliers of kernel.