The Australian Competition and Consumer Commission (ACCC) has decided not to oppose Elders Limited’s proposed acquisition of Delta Agribusiness, provided that Elders commits to divesting six Delta stores located in Western Australia. This decision comes after a thorough review of the potential impact on competition in local markets where both companies operate.

ACCC Deputy Chair Mick Keogh highlighted that the review took into account various factors, including the strength of competing retailers and the unique characteristics of local farming practices. The ACCC engaged with stakeholders such as farmers, competing retailers, and industry bodies to gather insights on the competitive landscape.

Given the localized nature of competition in the retail supply of rural merchandise, the ACCC expressed concerns that the acquisition could significantly lessen competition in certain areas. To mitigate these concerns, Elders has agreed to divest specific stores, with Independent Rural Pty Ltd and E. E. Muir & Sons Pty Limited identified as the purchasers for the divested stores.

The ACCC concluded that the divestment would create strong, independent competitors in the affected areas, thus addressing the competition concerns. Furthermore, the ACCC found that the acquisition is unlikely to substantially lessen competition in broader regional, state, or national markets, or in the wholesale supply of rural merchandise in Western Australia.