A decision on a proposed merger of merger between Elders and Delta Agribusiness by the Australian Competition and Consumer Commission (ACCC) has been delayed, with no updated public decision date released.
This follows a call by Grain Producers Australia (GPA) to block the $475 miilion takeover by Elders, to stop a “creeping tide of consolidation”, in Australia’s rural supply markets.
GPA Southern Region Director Andrew Weidemann said GPA's submission to the ACCC's consultation was informed by concerns of GPA's state member groups.
He said this consolidation had "occurred progressively over the last 5-10 years through a series of creeping or serial mergers and acquisitions involving wholesale, retail and vertically integrated rural supply businesses".
“This market evolution has progressively led to a substantial lessening of competition in these critical markets to the detriment of farmers and the wider Australian public," Mr Weidemann said.
“GPA is concerned that Elders Limited’s proposed takeover of Delta Agribusiness will substantially lessen competition in localised retail markets for rural supplies and the Australian wholesale supply market for key cropping inputs such as crop protection chemicals, fertilisers and seed.”
