Wesfarmers Dalgety Limited - s.87B undertaking

After conducting market inquiries, the ACCC determined that the proposed merger would not substantially lessen competition in the markets for the retailing of rural merchandise in Western Australia and the distribution of fertiliser in Western Australia on the basis that certain Undertakings would be provided by Wesfarmers Dalgety and IAMA. The Undertakings provide that Wesfarmers Dalgety and IAMA will sell one of two rural merchandise outlets that the new business will have in Esperance, Katanning, Merriden, Narrogin and Geraldton. The new business is required to sell in the first instance to another unaffiliated retailer of rural merchandise. The Undertakings further provide that Wesfarmers Dalgety and IAMA in the next two years will take no steps to constrain the terms upon which the agents and affiliates of the new business will deal with fertiliser suppliers and will continue the existing distribution agreement between IAMA and Summit Fertilisers.