Bulla gets all clear for Fonterra ice-cream takeover
Bulla (Regal Cream Products) has won approval from the Australian Competition and Consumer Commission to purchase the remainder of Fonterra’s ice-cream business in Australia.
The completion of the deal allows Fonterra to exit the ice-cream industry in Australia following their sale of the Peters (in WA) and Connoisseur brands to Nestlé.
The acquisition, which was announced in April, provides Bulla with the license to manufacture and market the Cadbury ice-cream brand in Australia as well as ownership of 500 Cadbury branded freezers located in route trade outlets. Bulla will also receive the rights to the Brownes tub ice cream range in Western Australia and the Authentic Ice Cream brand of ice cream sandwiches nationally.
“The ACCC found that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets,” the competition watchdog advised. “In reaching its conclusion the ACCC noted that the merged entity would not have the ability and incentive to impose a unilateral price rise above competitive levels as it would be constrained by existing effective competitors.”
Bulla eventually plans to transfer production of the Cadbury ice cream brand to its Victorian facilities. In the interim, however, Fonterra’s Balcatta site in Western Australia will continue to produce this range.