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Lineage given all clear on latest acquisition

The ACCC has announced the findings of its review into Lineage Logistics’ proposed acquisition of a fellow Perth-based cold storage supplier

The ACCC has announced it won’t oppose Lineage Logistics’ proposed acquisition of Fremantle City Coldstores (FCC).

Lineage has been given the all clear to acquire the Perth-based cold storage supplier despite both companies supplying cold storage and warehousing services to a range of customers in Perth, including food manufacturers, retailers and meat and seafood processors.

The ACCC’s review focused on whether removing FCC from the market as a result of the proposed acquisition would substantially lower competition in the supply of cold storage services in Perth.

The review involved testing the closeness of competition between Lineage and FCC.

“During our investigation, we engaged with a range of industry participants, including customers of both FCC and Lineage. We ultimately found that the transaction would not be likely to substantially lessen competition,” ACCC Commissioner Dr Philip Williams says.

The review found that while Lineage and FCC do compete to supply a similar group of customers in Perth, FCC represents a small portion of the total Perth market.

The combined Lineage-FCC entity will continue to face competition from significant competitors such as Americold, Golden West and several other smaller suppliers.

“Our consultation with the market has confirmed that recent expansions by competitors have led to additional capacity for cold storage in Perth,” Williams says.

“This additional capacity means customers will continue to be able to switch cold storage suppliers to seek better prices or service quality.”

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