ACCC clears Woolworths’ acquisition of B&J ready meals business
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The news: The competition regulator has cleared supermarket giant Woolworths’ plan to buy ready meals provider Beak & Johnston Holdings.
The numbers: Woolworths currently holds a 23% stake in B&J City Kitchen, a subsidiary of Beak & Johnston Holdings that manufactures ready meals and pastries for wholesale and retail sale. The supermarket giant outlined in August 2024 its intention to buy out the business, with the ACCC announcing a review into the deal in November that year.
The context: The ACCC said it considered whether rival ready meal producers to B&J could continue to compete effectively even if Woolworths only stocked or otherwise advantaged B&J’s products.
“Our investigation found that while Woolworths has significant bargaining power in its dealings with ready meal suppliers, in this case it was unlikely the acquisition would have a substantial anti-competitive effect,” ACCC commissioner Dr Philip Williams said in a statement.
The New Zealand Commerce Commission is also considering a clearance application from Woolworths.
The source: ACCC
