ACCC will not oppose AIRR rural deal with Elders
The ACCC will not oppose the proposed acquisition of rural wholesale buying group Australian Independent Rural Retailers by Elders (ASX:ELD).
ACCC Deputy Chair Mick Keogh said market feedback suggested that most independent retailers consider they have sufficient alternative supply options if Elders attempted to discriminate against them.
The ACCC also considered the issue of Elders’ bargaining power with manufacturers or importers of rural merchandise.
They concluded that while Elders would be in a strong bargaining position, suppliers still generally had other channels through which to distribute their goods, and any increase in buyer power was not likely to be substantial.
Shares in Elders (ASX:ELD) closed 1.8 per cent higher at $6.78.
Copyright 2019 – Finance News Network
Source: Finance News Network
