Logistics News

ACCC gives green light to Elders acquisition

Australia’s competition watchdog says it won’t oppose the proposed sale of Elders Rural Services Limited to Ruralco

May 31, 2013

Australia’s competition watchdog says it won’t oppose the proposed sale of Elders Rural Services Limited to Ruralco.

The Australian Competition and Consumer Commission (ACCC) says the deal won’t reduce competition
because
in most towns where the combined networks of the parties would operate, a substantial number of alternative retail suppliers of agri-products are located nearby.

“In the small number of towns where the merger parties face limited competition from alternative agri-product retailers, the ACCC considered existing or potential new retail suppliers of agri-products could readily enter or expand into these markets,” says ACCC Chairman Rod Sims.

“The ACCC also took into account the competitive constraint arising from the presence of a number of alternative retail suppliers of agri-products, including Landmark, independent CRT and Town & Country retailers, and strong independent wholesale banner groups such as AgLink and AIRR,” Sims says.

Sims adds the ACCC finds independent retailers of agri-products are able to source supply from independent wholesalers on terms which enables them to compete strongly with the major corporate retailers.

“In reaching this decision, the ACCC consulted widely with a range of interested parties, including independent CRT and Town & Country members, independent wholesalers of agri-products, livestock, wool and water broking agents and industry bodies,” Sims says.

Ruralco and Elders each operate a national network of retail outlets, supplying a range of agri -products including fertiliser, agricultural chemicals, animal health products and farm merchandise.

The two
companies also offer a range of rural services including livestock agency, wool marketing, cattle trading, real estate, water broking/trading and financial services.

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