Nestlé Australia has received competition approval to acquire some of Fonterra’s Australian ice cream businesses.
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In a statement on its website, the Australian Competition and Consumer Commission gave the green light for Nestlé’s proposed acquisition of the Peters brand in Western Australia and the national Connoisseur brand from Fonterra.
The ACCC said that it was “unlikely” that the deal would “substantially lessen competition in the relevant markets”, as effective existing competitors would ensure continued competition.
According to the ACCC, while a few large players control the ice cream retail market, the acquisition would not provide Nestlé with a dominant position as the company does not have a significant share of the market.
Fonterra has indicated that it intends to focus on the categories of cheese, spreads, yoghurts and dairy desserts in Australia. The company plans to sell the remainder of its Australian ice cream interest to Bulla, including the licence to manufacture and market Cadbury ice cream in Australia.
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By GlobalDataThe ACCC is due to reveal its decision on the competitive impact of the Bulla deal early next month.
