“[U]nlikely to result in a substantial lessening of competition”, ACCC Okays Coles Milk Plant Acquisitions
“While we found that Coles may have an incentive to consolidate some of its milk volumes in the eastern states, this was unlikely to lead to a substantial lessening of competition,” Mr Keogh said.
“Coles will likely continue to face financial incentives to stock and support branded milk from other processors, due to the higher retail margins it earns on these products.”
In addition, the ACCC found that Coles’ commercial incentives to consolidate its milk supply would exist with or without the transaction due to the significant excess capacity at the Laverton and Erskine Park facilities.
Read More “[U]nlikely to result in a substantial lessening of competition”, ACCC Okays Coles Milk Plant Acquisitions