The Commerce Commission has published a statement of issues relating to an application from Foodstuffs North Island Limited and Foodstuffs South Island Limited seeking clearance to merge.
The Statement of Issues outlines the Commission’s possible competition issues with the acquisition following its initial investigation. The Statement of Issues is not a final decision and does not mean that the Commission intends to decline or clear the merger.
The Commission is seeking submissions from Foodstuffs North Island, Foodstuffs South Island and other interested parties on the issues raised in the Statement of Issues.
The Statement of Issues, along with other documents related to the Commission’s investigation on the parties’ application, can be found on the case register.
Submissions can be sent by email to registrar@comcom.govt.nz with the reference “Foodstuffs merger” in the subject line.
Submissions are due by close of business on 18 April 2024, with cross-submissions due by close of business on 30 April 2024.
The Commission is currently scheduled to make a decision on the application by 31 May 2024. However, this date may be extended.
Background
Foodstuffs North Island and Foodstuffs South Island currently operate as separate co-operatives that focus on serving the island in which they are located. With the proposed merger, Foodstuffs North Island and Foodstuffs South Island would merge to become a single national grocery entity.
The Commerce Commission states: “We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
Further information explaining how the Commission assesses a merger application is available on our website.”
