Preliminary Issues: Goodman Fielder/Lion yoghurt merger

Statement of Preliminary Issues released for Goodman Fielder/Lion yoghurt merger

The Commerce Commission has published a Statement of Preliminary Issues relating to an application from Goodman Fielder New Zealand Limited (Goodman Fielder) for clearance to acquire assets related to the manufacture and distribution of ‘Yoplait’ branded yoghurt in New Zealand from Lion - Dairy & Drinks (NZ) Limited (Lion).

Goodman Fielder is a food company operating across New Zealand, Australia, and the Asia-Pacific region. In New Zealand, Goodman Fielder produces a range of dairy, bread, and grocery items, including yoghurt under the brands Meadow Fresh, Activate Probiotic, Naturalea, Kalo, and Puhoi Valley.

Lion is a food and beverage company in Australia and New Zealand ultimately owned by Kirin Holdings Company Limited. Lion’s New Zealand business includes alcoholic and non-alcoholic beverages, dairy drinks, and the manufacture and distribution of yoghurt under the Yoplait brand.

The statement outlines the key competition issues that the Commission considers important in deciding whether or not to grant clearance to the proposed acquisition. A copy can be found on the Commission’sClearances Register.

The Commission invites interested parties to provide comments on the likely competitive effects of the proposed acquisition. Submissions can be sent by email to registrar@comcom.govt.nz with the reference “Goodman Fielder/Lion” in the subject line. Any submissions should be received by close of business onFriday 13 July 2018.

The Commission is currently scheduled to make a decision on the application by 17 August 2018. However, this date may be extended as the investigation progresses, and in particular, if we need to test and consider the issues identified further.

Background
We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
A fact sheet explaining how the Commission assesses a merger application is available on the clearances page.

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