Commerce Commission declines to give Tegel Foods clearance to acquire Brinks
Published23 Oct 2008
The Commerce Commission has declined to give clearance for Tegel Foods Limited (Tegel) to acquire the assets and undertaking of the poultry businesses of P H Van den Brink Limited, VDB Industries Limited, Brinks South Island Limited, Southland VDB Limited, and BAT Promotions Limited, collectively known as Brinks.
The Commerce Commission has declined to give clearance for Tegel Foods Limited (Tegel) to acquire the assets and undertaking of the poultry businesses of P H Van den Brink Limited, VDB Industries Limited, Brinks South Island Limited, Southland VDB Limited, and BAT Promotions Limited, collectively known as Brinks.
Commerce Commission Chair Paula Rebstock said the Commission cannot be satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in four markets. Those markets are for the processing and wholesale supply of chicken meat products to:
supermarkets in the North Island;
food service providers in the North Island;
supermarkets in the South Island; and
food service providers in the South Island.
The Commission will not be making any comment on the decision until the written reasons are available.
The written reasons for the decision will be available as soon as practicable on the Commission's website www.comcom.govt.nz, under the Clearances Register.
Background
On 21 May 2008 the Commerce Commission received an application from Tegel seeking clearance to acquire the chicken business assets of Brinks.
Tegel is a vertically integrated poultry growing and processing company with its own breeding stock, hatcheries, feed mills, processing, distribution and manufacturing facilities throughout New Zealand. The company supplies fresh and frozen chicken meat and processed chicken meat products to supermarkets, the food service segment and quick service restaurant outlets throughout New Zealand.
Brinks' business involves growing and processing poultry. The company is not vertically integrated. Brinks supplies fresh and frozen chicken meat and processed chicken meat products primarily to supermarkets and the food service segment throughout New Zealand.
The food service segment includes further preparers, distributors and retailers other than supermarkets. Chicken meat products include whole dressed chickens and cut up pieces.
