The Australian Competition and Consumer Commission (ACCC) has raised concerns about Elders' proposed acquisition of Delta Agribusiness.
ACCC deputy chair, Mick Keogh said there are concerns about whether the acquisition would create a monopoly in the agricultural industry. This is because both companies supply rural merchandise, including agricultural chemicals, seeds, fertilisers, animal health products, and related services, such as agronomy services, to consumers in WA.
“Competition in the supply of rural merchandise is critical to Australian farmers and our global competitiveness in agricultural products,” ACCC Deputy Chair Mick Keogh said.
“We have preliminary concerns that the proposed acquisition may lead to higher prices or reduced quality in the supply of rural merchandise without an independent Delta competing with Elders following this proposed acquisition.”
Elders announced the A$475 million acquisition in November 2024.
Key areas where the ACCC are concerned the merger could reduce competition are local markets in the North-West Victoria, Northern Wheatbelt (WA), Central Wheatbelt (WA), Great Southern (WA) and Murray-Mallee (SA) regions. The ACC are still investigating the impact on a broader geographical level.
“A key issue we are testing is the extent to which having a chain of retail stores assists Delta to compete with Elders more effectively than smaller retailers, both in individual local markets, and across a broader geographic area,” Mr Keogh said.
In response to the ACCC’s ongoing investigation, Elders said it would continue to engage with the commission to address any issues.
“Elders remains confident that the transaction will bring benefits to local agricultural markets through the expansion of price-competitive private label options, increased technical expertise and greater product and service offerings for farmers,” Elders said in a statement.
“Elders is assessing the impact of the ACCC’s process on the transaction timetable and will provide a further update as and when required.”
