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Commission Concerned over Acquisition by Baiada

by 5m Editor
9 January 2009, at 9:38am

AUSTRALIA - The acquisition of the country's second largest chicken producer, Bartter, by Baiada may yet be blocked by the competitive regulator, with the Australian Competition and Consumer Commission (ACCC) releasing a Statement of Issues highlighting concerns over the proposal.

Bartter Enterprises, the owner of the Steggles brand and employer of over 4,500, is the second largest producer and marketer of chicken and turkey products in Australia. Inghams - with over 7,000 employees - is the largest, with Baiada the third largest producer of chicken products in Australia. Together, the three companies hold around 65 per cent of the Australian market.

A takeover is likely to see Baiada, which currently has around 2,200 employees, claim top spot from Inghams.

The competition watchdog is worried about a potential lessening of competition in two main areas:

  • The market for the acquisition of chicken grower services in the west Victoria region and
  • The market for the supply of chicken meat to national wholesale customers, including supermarkets and quick-service restaurants.

The ACCC commenced their inquiries in November and have postponed their final decision to allow further market inquiries in response to the Statement of Issues. Further submissions from the market can be made until January 27 2009.

To allow for submissions in response to the Statement of Issues, the ACCC's final decision date will be deferred until 11 February 2009.

Further Reading

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