The Australian Competition and Consumer Commission (ACCC) has decided not to oppose the proposed acquisition of Beak & Johnston (B&J) by supermarket chain Woolworths.
Woolworths, which already owns a 23% stake in B&J City Kitchen, aims to acquire the remaining shares, leading to full ownership of B&J’s subsidiaries including Beak & Johnston NZ.
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The New Zealand Commerce Commission is currently evaluating a similar clearance application filed by Woolworths in January 2025.
The ACCC’s review focused on whether competitors in the ready meal market could effectively compete if Woolworths favoured B&J’s products.
ACCC commissioner Dr Philip Williams stated: “Our investigation found that while Woolworths has significant bargaining power in its dealings with ready meal suppliers, in this case it was unlikely the acquisition would have a substantial anti-competitive effect.
“Rival suppliers of ready meals will continue to have access to other supermarkets and convenience stores. Ready meal suppliers can also distribute through other channels, such as food service wholesaling and direct-to-consumer models.”
The assessment also considered the potential for Woolworths to restrict B&J product supply to its competitors and the resulting impact on the market.
ACCC’s review shows that several large and small suppliers could provide alternative ready meals, ensuring that rival retailers had access to diverse quality products.
Dr Williams added: “Rival retailers will continue to have options for sourcing quality ready meals to suit a variety of consumer preferences.
“Ultimately, we did not find that the proposed acquisition is likely to substantially lessen competition in any market.”
Woolworths, one of Australia’s leading grocery retailers, offers products including chilled and frozen ready meals, while B&J produces chilled ready meals, pastries and a limited range of frozen meals for supermarkets, convenience stores and food service wholesalers.
Beak & Johnston’s subsidiary, a manufacturer of sauces, soups, and slow-cooked meats, will not be part of this acquisition and will remain independent.
