Statement Of Preliminary Issues Released For Allied Foods / Dad’s Pies Clearance Application

The Commerce Commission has published a statement of preliminary issues relating to an application from Allied Foods (N.Z.) Limited (Allied) to acquire 100% of the shares of Dad’s Pies Limited (DPL).

This statement outlines the key competition issues that the Commission considers important in deciding whether or not to grant clearance to the proposed acquisition.

The Commission invites interested parties to provide comments on the likely competitive effects of the proposed acquisition. Submissions can be sent by email to registrar@comcom.govt.nz with the reference “Allied Foods (N.Z.) Limited / Dad’s Pies Limited” in the subject line. Parties should provide a public version of their submission at the same time for publication on the Commission’s case register. Any submissions should be received by close of business on 2 November 2021.

The Commission is currently scheduled to make a decision on the application by 3 December 2021. However, this date may be extended as the investigation progresses.

The Statement of Preliminary Issues and a public version of the application can be found on the on the Commission’s case register.

Background

This clearance application was originally filed by George Weston Foods (NZ) Limited (GWF). On 18 October 2021 the Application was varied so that clearance is now sought for Allied to make the acquisition. Allied owns 100% of GWF.

Both GWF and DPL manufacture and supply savoury pies and sausage rolls in New Zealand. They sell these to a variety of customers including supermarkets, dairies, convenience stores, petrol stations and food distributors (which supply cafes and restaurants).

GWF sells its pies and sausage rolls under the “Big Ben” brand. DPL sells its products under “The Baker’s Son” brand to supermarkets, and under the “Dad’s Pies” brand everywhere else.

The Commission will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

Further information explaining how the Commission assesses a merger application is available on our website.

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