ACCC STATEMENT MIRRORS GPA CALLS TO BLOCK ELDERS TAKEOVER

Grain Producers Australia acknowledges the Australian Competition and Consumer Commission’s (ACCC) announcement today – in a published ‘Statement of Issues’ paper – outlining preliminary concerns about the proposed take-over of Delta Agribusiness, by Elders Limited.

Especially the weakening of market competition with perverse impacts on farmers and rural communities.

In March this year, GPA supported the ACCC’s decision to delay its originally scheduled date to announce the provisional findings of a decision on the proposed take-over. This extension provided the ACCC with additional time to seek further information, from the merger parties. HERE

In January, GPA submitted to the ACCC’s review, opposing the proposed take-over. Today the ACCC HERE published its ‘Statement of Issues (29 May 2025) Elders Limited – proposed acquisition of Delta Agribusiness’.

GPA Southern Region Director, Andrew Weidemann, said the ACCC’s publication of the paper, at a critical stage in the review process, clearly reflected the key concerns raised in GPA’s original submission.

“The ACCC’s preliminary view is that the proposed acquisition is likely to substantially lessen competition in the retail supply of rural merchandise and related agronomy services in certain local markets,” he said.

“This reflects the serious concerns and the supporting information, facts and evidence provided by GPA, on behalf of our members, to inform the ACCC’s review process.”

GPA’s submission – which remains confidential – provided the ACCC with data and evidence for decision-makers to consider in their analysis, such as showing 30 different locations where Elders and Delta currently have directly competing retail premises (based on post codes).

It also highlighted the need for reliable access to competitively priced crop inputs as being ‘critical to the profitability and sustainability of Australian grain farming businesses'.

GPA Chief Executive, Colin Bettles, said the submission was a reflection of GPA’s robust and legitimate democratic policy development processes, on national matters, engaging the Grains Councils of State Farming Organisations, and relevant expertise.

“The views of GPA’s members, highlighting serious concerns about reduced competition, have also extended to other commodities, not just grains, and calling on the ACCC to thoroughly scrutinise the potential competition impacts of this proposed take-over on many types of farmers, in various locations,” he said.

GPA has raised concerns the ASX listed company’s proposed acquisition – revealed in November last year – carries potential competition implications, with risks to input costs and reliability of supply; not only for the Australian grains sector, but also other major farm commodities. HERE

Mr Weidemann said GPA’s submission raised genuine concerns about the proposed take-over substantially lessening competition in localised retail markets for rural supplies, and wholesale supply market for key cropping inputs such as crop protection chemicals, fertilisers and seed.

As part of the next stage in the ongoing review process, the ACCC is now inviting submissions from interested parties, by 12 June 2025 – and anticipates making a final decision on 21 August 2025, but this timeline can change.

Mr Bettles said he welcomed direct engagement with other stakeholders – including grain producer groups – to discuss the core matters raised in the ACCC’s paper; especially concerns about the weakening of competition and the need to protect the interests of farmers and regional communities.

“GPA’s submission urges the ACCC to oppose the passage of this proposed takeover and we’re pleased the serious concerns we’ve raised have been acknowledged, at this stage in the review process,” he said.

“We’ll continue to remain vigilant on these matters, working closely with our members to try to prevent pernicious consequences, of diminished competition.”

Mr Bettles said GPA’s 2025 Federal Election Policy Priorities document HERE had listed – at number one – the mahoe concerns shared by Australian grain producers about high input costs, calling for these costs to be reduced, with local supply and manufacturing boosted, to maintain famer productivity, and sustainability.

He said GPA would continue monitoring the ACCC’s review process closely, to ensure Australian grain producers and rural communities are protected from the potential consequences of reduced market competition.

EXCERPT (ACCC paper released today)

Issue of concern

6. The ACCC’s preliminary view is that the Proposed Acquisition is likely to substantially lessen competition in the retail supply of rural merchandise and related agronomy services in certain local markets in Western Australia, South Australia and Victoria as set out in paragraph 84 below. 

Issues that may raise concerns

 7. The ACCC’s preliminary view is that the Proposed Acquisition may substantially lessen competition in the retail supply of rural merchandise and related agronomy services: 

• in certain local markets in Western Australia, South Australia, Victoria and New South Wales as set out in paragraph 87 below, and 

• at a broader regional, state or national level. 

8. The ACCC is also concerned that the Proposed Acquisition may substantially lessen

competition in the wholesale supply of rural merchandise in Western Australia. 

Issues unlikely to raise concerns

9. At this stage, the ACCC does not consider that the Proposed Acquisition is likely to

substantially lessen competition: 

• in the supply of livestock agency services, or

• in the supply of rural real estate services or financial services.

ENDS