Farmlands has been cleared by the Commerce Commission to buy the animal feeds company Seales Winslow.
After initially publishing some concerns with the proposed acquisition, the commission said it is unlikely to substantially lessen competition in any New Zealand market.
Therefore, it has granted clearance for Farmlands Co-operative to buy 100% of the shares of Seales Winslow from vendor Ballance Agri-Nutrients.
In reaching its decision, the commission considered the potential impact on competition in regional markets for the bulk supply of supplementary feed for ruminants and, separately, the bagged supply of calves in particular.
“While the merging parties are both significant suppliers of pelletised compound feed for ruminant animals such as dairy cows and calves, they also compete with suppliers of other types of pelletised feeds.
“These other feeds include single grains, often referred to as ‘straight’ feed, or feed that is a combination of grains, often referred to as ‘blend’ feed.
“This means that farmers have choices other than just pelletised feed.
“As a result, we are satisfied that Farmlands is unlikely to be able to significantly increase prices, or lower the quality, of its bulk and bagged feed,” Commission director Derek Johnston said.
