Foodstuffs merger would eliminate independent rivalry between grocery acquirers, New Zealand regulator says
( October 23, 2024, 03:25 GMT | Official Statement) -- MLex Summary: The New Zealand competition watchdog said that one of the main reasons for rejecting the merger of Foodstuffs North Island and Foodstuffs South Island, a decision announced on Oct. 1, was the potential lessening of competition among grocery acquirers leading to less favorable terms for suppliers. In the full reasons published today, the New Zealand Commerce Commission said it was also concerned about the merger’s impact on the combined buyer or market power of the entities. It said that the removal of one of three major buyers, which includes Woolworths New Zealand, would further entrench the bargaining imbalance that already exists between many suppliers and the Foodstuffs North Island and Foodstuffs South Island separately. The document also said that supplier groups indicated that distributors of grocery products are unlikely to view alternative sales channels as close substitutes to the major grocery retailers.The full reasons for the determination and the executive summary of the full reasons published by the New Zealand Commerce Commission are attached:...
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