The Australian Competition and Consumer Commission is undertaking an informal review of the proposed merger between beef processors, Cargill Beef Australia and Teys Bros Holdings.
The ACCC has invited comments from interested parties regarding the merger, with submissions due by close of business on June 3.
Tim Lear, director of the ACCC’s merger investigations branch said the merger was being considered under section 50 of the Competition and Consumer Act, which prohibits mergers and acquisitions that “substantially lessen competition in a market, or are likely to do so.”
Most of the focus in ACCC’s accompanying notes for the review dwell on potential impacts on acquisition of slaughter cattle, particularly in areas like north-eastern South Australia, Victoria and southern/central NSW.
The commission has provided a proposed announcement date for its findings by July 7.
An ‘informal review’ is considered to be at the soft end of the range of options open to ACCC in its deliberations over mergers and acquisitions.
An approval would see the merger on-track for formal commencement some time in the third quarter this year.
HAVE YOUR SAY