The New Zealand Commerce Commission has granted clearance for Woolworths Group Limited to acquire 100% of Beak & Johnston Holdings Pty Ltd. This decision was made after a thorough investigation into the potential impact of the acquisition on competition within various national markets, including slow cooked meats, chilled and canned soups, and ready-made meals.

Chair Dr. John Small stated that the Commission found the acquisition unlikely to substantially lessen competition in any relevant market. Despite Woolworths' significant presence in the retail grocery sector, the Commission concluded that the merged entity would not have the ability or incentive to restrict access to Beak & Johnston products for rival grocery retailers.

The investigation revealed that rival retailers could still source products from alternative suppliers, which mitigates concerns about Woolworths potentially delisting rival products or compromising their attractiveness. The Commission noted that the projected growth in the convenience meal sector would likely prevent any significant competitive harm from the acquisition.

Furthermore, the Commission emphasized that each merger or acquisition is evaluated on its own merits, and the clearance of this particular acquisition does not imply that future acquisitions by major grocery retailers will receive the same approval. A public version of the decision's written reasons will be made available on the Commission's case register in due course.

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