The Australian Competition and Consumer Commission (ACCC) has announced that it will not oppose Woolworths Group Limited's proposed acquisition of Beak & Johnston Holdings Pty Ltd. Woolworths currently holds a 23% minority interest in B&J City Kitchen Pty Ltd, a subsidiary of B&J that specializes in manufacturing ready meals and pastries. The acquisition would allow Woolworths to gain full ownership of B&J's subsidiaries, including Beak & Johnston NZ Pty Ltd.

During its investigation, the ACCC assessed whether rival ready meal producers could effectively compete if Woolworths favored B&J's products. The findings indicated that despite Woolworths' significant bargaining power, the acquisition was unlikely to have a substantial anti-competitive effect. ACCC Commissioner Dr. Philip Williams stated that rival suppliers would still have access to other supermarkets and distribution channels, ensuring competition remains intact.

The ACCC also examined whether Woolworths would have the incentive to restrict B&J products from rival retailers. The review revealed a number of large competitors in the ready meal sector, as well as smaller suppliers catering to niche markets. This diversity in suppliers means that rival retailers will continue to have options for sourcing quality ready meals that meet various consumer preferences.

Ultimately, the ACCC concluded that the proposed acquisition is not likely to significantly lessen competition in any market. The New Zealand Commerce Commission (NZCC) is also reviewing a clearance application related to this acquisition.