In our March 20093 edition, we reported on opposition from the ACCC in respect of a merger between Barterr Enterprises Pty Ltd (Barterr), the second-largest processor of chicken meat in Australia and the owner of ‘Steggles’, by Baiada Poultry Pty Ltd (Baiada). Baiada is Australia’s third-largest processor of chicken meat and the merged entity would have replaced Inghams as the largest processor of chicken meat in Australia. At the time, the ACCC found that the proposed merger would likely result in a substantial lessening of competition in the market for the wholesale supply of processed chicken meat.

Baiada has addressed the ACCC’s concerns by offering an undertaking that upon acquiring Bartter it will divest all assets currently owned by Bartter in Victoria to La Ionica Poultry.

The ACCC accepted this undertaking as allaying its concerns, finding that La Ionica Poultry's acquisition of these assets would lead to a significant expansion of its business. The ACCC concluded that the acquisition will allow La Ionica to compete with Baiada to supply large volume buyers of processed chicken, such as supermarkets and fast food outlets, and will therefore offer increased competitive constraints to the merged entity.