Metcash is a step closer to acquiring wholesale food distributor Superior Food Services after the Australian Competition and Consumer Commission said it would not oppose the deal.
“We conducted extensive market inquiries with customers, suppliers, competitors and industry associations,” said ACCC commissioner Stephen Ridgeway. “We ultimately found that the transaction would not be likely to substantially lessen competition.”
The ACCC said that while the two companies supply food products, market feedback indicates they do not closely compete for customers.
Metcash, which also operates wholesaler Campbells, supplies grocery and fresh foods to independent supermarkets and retailers.
Meanwhile, Superior Food Services purchases food products from suppliers and distributes them to food service businesses.
“We found that Metcash and Superior make up a very small percentage of the overall demand from food suppliers, and that suppliers would continue to have many other alternative routes to market,” said Ridgeway.
