Woolworths cleared to acquire PETstock

The Commerce Commission has granted clearance for Woolworths Group Limited to acquire 55% of the shares in PETstock Pty Ltd.

In reaching its decision, the Commission considered the potential impact of the proposed acquisition on competition in the markets for the retail supply of pet products to consumers and the acquisition of pet products from suppliers.

Chair Dr John Small said the Commission was satisfied that the acquisition is unlikely to substantially lessen competition in any New Zealand market.

“Our investigation found that Woolworths and PETstock do not compete closely in the retail supply of pet products and will continue to be constrained by several other established competitors in all relevant local areas, including online retailers. We consider that these factors will mean the merged entity is unlikely to be able to significantly increase prices, or reduce quality, including by combining its Woolworths and PETstock stores to offer bundled discounts to consumers in ways that substantially lessen competition in any market,” said Dr Small.

“In relation to the acquisition of pet products, our investigation found that the merged entity is unlikely to have the incentive and ability to engage in anticompetitive conduct which may affect suppliers or competitors.”

A public version of the written reasons for the decision will be available on the Commission’s case register in due course.

Background
We 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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