ACCC details concerns over Elders' $475m acquisition of Delta
Make us a preferred source
Make us a preferred source on Google
The news: The Australian Competition and Consumer Commission has outlined concerns over Elders' proposed acquisition of rival Delta Agribusiness, including that it may substantially lessen competition in the retail supply of rural merchandise in Victoria, Western Australia and South Australia.
The context: Elders agreed to buy Delta for $475 million in November, with completion initially expected to occur in the first half of 2025.
The competition watchdog’s preliminary view is that the proposed acquisition is likely to substantially lessen competition in the retail supply of merchandise such as agricultural chemicals, seed, fertiliser, animal health products and related service.
Concerns centre around the North-West Victoria, Northern Wheatbelt (WA), Central Wheatbelt (WA), Great Southern (WA) and Murray-Mallee (SA) regions.
The ACCC is also exploring potential concerns in other local markets with a retail presence at a broader geographic level as well as whether the proposed acquisition would reduce competition at the wholesale level in Western Australia or if other suppliers could effectively compete if the acquisition goes through.
What they said: “Competition in the supply of rural merchandise is critical to Australian farmers and our global competitiveness in agricultural products,” ACCC deputy chair Mick Keogh said.
“We have preliminary concerns that the proposed acquisition may lead to higher prices or reduced quality in the supply of rural merchandise without an independent Delta competing with Elders following this proposed acquisition.”
The sources: ACCC media release, ACCC statement of issues
