The Australian Competition and Consumer Commission (ACCC) has approved Elders Limited’s $475 million acquisition of Delta Agribusiness. This decision follows Elders’ agreement to divest six of Delta’s retail outlets located in Western Australia. The ACCC’s approval is contingent upon a court-enforceable undertaking to sell these six outlets, a condition set after the deal was initially announced 11 months ago.
Elders is a major player in the agricultural supplies sector, operating approximately 245 outlets across Australia. The company provides a range of products, including agricultural chemicals, seeds, fertilisers, and animal health products. Delta Agribusiness, with its 64 sites, ranks as the third-largest participant in the market.
The ACCC’s Deputy Commissioner, Mick Keogh, highlighted the localised nature of competition within the rural merchandise retail sector. He noted that factors such as regional farming variations and the significance of local relationships contribute to this localised dynamic. The market leader in Australia is Nutrien Ag Solutions, a Canadian-owned entity with a market share exceeding 40 per cent and a network of 385 retail locations.
The requirement for Elders to sell six Delta outlets in Western Australia aims to maintain competitive balance within specific regional markets. This action reflects the ACCC’s focus on preserving competition at the local level, ensuring that farmers continue to have access to a range of suppliers and competitive pricing for essential agricultural inputs.
