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George Weston Foods cleared to buy NZ’s Dad’s Pies

Allied Foods has received regulatory approval to proceed with its planned acquisition of independent rival bakery Dad’s Pie’s. 

The Commerce Commission said today it had granted clearance to Allied Foods’ subsidiary George Weston Foods NZ to buy the business. Both companies make savoury pies and sausage rolls retailed through supermarkets, dairies, convenience stores, petrol stations and food distributors that supply cafes and restaurants. Allied’s pies bear the Big Ben brand, while Dad’s sells them under its own name, along with The Baker’s Son in supermarkets. 

Commissioner Dr Derek Johnston said in a statement that the commission is satisfied the acquisition is unlikely to substantially lessen competition in any New Zealand market. 

“Our investigation found that GWF and DPL are not each other’s closest competitors in New Zealand. Customers consider Big Ben to be a ‘base’ or ‘mainstream’ pie, whereas Dad’s Pies are considered to be ‘premium’ pies,” he said.  

“We also found that GWF and DPL compete against several large and well-resourced competitors, including from Australia. Post-merger, we expect that the merged entity will face significant competition from these players for all the different types of customers they supply.” 

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