The ACCC will not oppose Sanitarium’s proposed acquisition of Vita Brits as it believes it would not likely substantially lessen competition.
The consumer watchdog’s review focused on how closely Weet-Bix, which is manufactured and supplied by Sanitarium, and Vita Brits compete in the wholesale supply of wheat biscuit cereal and the future of the Vita Brits product should it not be acquired by Sanitarium.
The proposed acquisition involves Vita Brits branding, intellectual property and goodwill. Currently, Vita Brits is manufactured by Sanitarium and supplied by Nestlé.
Dr. Philip Williams, ACCC Commissioner, said they tested the closeness of competition between the Weet-Bix and Vita Brits products and found that consumers do not typically switch between the two.
“This finding was consistent with the feedback we received from market inquiries. We found that the proposed acquisition would not be likely to substantially lessen competition.”
The ACCC also considered closely the viability of the Vita Brits product without the acquisition, following Nestlé’s loss of Vita Brits manufacturing capability.
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