The Commerce Commission has published a statement of unresolved issues relating to an application from Foodstuffs North Island Limited and Foodstuffs South Island Limited seeking clearance to merge.
The Statement of Unresolved Issues outlines the competition issues in respect of which the Commission is not satisfied and that it continues to test in relation to the merger. The Statement of Unresolved Issues is not a final decision and does not mean that the Commission intends to decline or clear the merger.
The Commission has sought submissions from Foodstuffs North Island, Foodstuffs South Island and other interested parties on the issues raised in the Statement of Unresolved Issues. The Statement of Unresolved 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 12 August 2024, with cross-submissions due by close of business on 23 August 2024.
The Commission is currently scheduled to make a decision on the application by 1 October 2024. However, this date may be extended.
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 will give clearance to a proposed merger if it's satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
On the 18th of January 2024, the Commission published a statement of preliminary issues summarising the key points in the application and setting out the issues that it considered important at the start of its investigation. On the 4th of April 2024, the Commission published a statement of issues setting out the potential competition issues that it had identified following its initial investigation of the merger. Following the receipt of submissions on the Statement of Unresolved Issues, the Commission will make its final decision to either clear or decline the merger.
The Statement of Unresolved Issues published by the Commerce Commission is its third issues statement released on the merger, and followed the process outlined in the mergers and acquisitions Guidelines.
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