Woolworths Seeks Approval to Acquire Beak & Johnston

Woolworths Group has filed for clearance with New Zealand's Commerce Commission to acquire Beak & Johnston, a manufacturer of ready-meals and frozen foods, underlining its commitment to expanding its presence in the ready-meal category. The acquisition is seen as strategic, given Woolworths has been a long-standing customer of Beak & Johnston for over 37 years, utilizing their products for its own brand offerings. However, the move has sparked concerns about potential negative impacts on competition in the already concentrated supermarket sector, with experts warning that it could restrict access for rival retailers. The Commerce Commission is expected to make a decision by March 12, while the Australian Competition and Consumer Commission has paused its review of Woolworths' acquisition of the wider Beak & Johnston operations. Woolworths argues there is no overlap between its operations and Beak & Johnston's manufacturing, as it does not currently produce grocery items in New Zealand. The acquisition aligns with Woolworths' strategy to enhance its exclusive brands and meet growing consumer demand for convenient meal options.