Dec 1 (Reuters) - ACC: COLES' ACQUISITION OF TWO SAPUTO MILK...

Dec 1 (Reuters) - ACC:

• COLES' ACQUISITION OF TWO SAPUTO MILK PLANTS NOT OPPOSED,AXX
• COLES' ACQUISITION OF TWO SAPUTO MILK PLANTS NOT OPPOSED,AXX-COL.AX
• ACCC WILL NOT OPPOSE COLES' PROPOSED ACQUISITION OF TWO MILK PROCESSING PLANTS FROM DAIRY PROCESSOR, SAPUTO
• CONCERNS WERE ALSO RAISED THAT ACQUISITION MAY CHANGE SAPUTO’S INCENTIVES AND RESULT IN IT EXITING THE RAW MILK MARKET IN NSW
• ACQUISITION IS UNLIKELY TO RESULT IN A SUBSTANTIAL LESSENING OF COMPETITION IN BREACH OF SECTION 50 OF COMPETITION AND CONSUMER ACT
• TOOK INTO ACCOUNT SAPUTO’S FINANCIAL DATA WHICH INDICATES IT HAS COMMERCIAL INCENTIVE TO CONTINUE SELLING ITS DEVONDALE MILK IN NSW
• FOUND THAT OTHER DAIRY COMPANIES SUCH AS LACTALIS AND BEGA WOULD CONTINUE TO BE COMPETITORS FOR RAW MILK IN CENTRAL NSW
• FOUND THAT COLES’ COMMERCIAL INCENTIVES TO CONSOLIDATE ITS MILK SUPPLY WOULD EXIST WITH OR WITHOUT TRANSACTION
• ACKNOWLEDGES SOME STAKEHOLDERS ASKED THAT CONDITIONS BE IMPOSED ON COLES SO ITS RELATIONSHIPS WITH PROCESSORS AND FARMERS ARE EFFECTIVELY COVERED