A proposal by Australia’s Woolworths to buy about two-thirds of PFD Food Services and its properties may hurt competition in the food sector, the country’s competition regulator stated on Tuesday, December 15.
The proposed acquisition could increase Australia’s biggest grocer’s already “substantial” bargaining power in its dealings with food manufacturers, Australian Competition and Consumer Commission Chair Rod Sims said in a statement.
Woolworths announced in August it would pay a combined AU$552 million (US$415.7 million) for a 65% stake in PFD and 26 freehold properties that would be leased back to the country’s second-biggest food service firm.
PFD Foodservices is the second-largest player in Australia’s foodservice industry with an annual turnover of AU$2.1 billion. The company purchases foodstuffs from manufacturers and distributes them into businesses such as cafes, pubs, restaurants, and cinemas.
Woolworths is planning to acquire 65% of the business from the founding Smith family, who will retain a 35% stake, as part of a broader plan to expand the retailer’s operations beyond the supermarket and drinks space.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
FCC Votes to Restore Net Neutrality Rules
Apr 25, 2024 by
nhoch@pymnts.com
Apple Rejects Spotify’s Updated App Over In-App Pricing Disclosure
Apr 25, 2024 by
CPI
FCC Set to Reinstate Net Neutrality Rules Today
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI