ACCC will not oppose AIRR rural deal with Elders

Company News

by Rachael Jones

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.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.