Commission Clears Inghams To Buy Bromley Park Hatcheries Businesses

The Commerce Commission has granted clearance for Inghams Enterprises (NZ) Pty Limited (Inghams) to acquire the assets of the Cobb Commercial and Riverland businesses of Bromley Park Hatcheries Limited.

Inghams is part of Inghams Group Limited, an Australian-based poultry company that has breeding operations, hatcheries, contract growing and processing operations. Inghams produces day-old chicks for its own manufacturing needs but does not sell them to third parties.

Bromley Park Hatcheries is a producer of day-old chicks. Its operations include breeder farms and a hatchery. Bromley Park Hatcheries has three business units, the Cobb Commercial business (which sells day-old chicks to poultry growers and processors), the Riverland business (which sells Cobb parent stock to the Pacific Islands) and the Shaver/SXB business (which produces day-old chicks for egg production only).

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

“Our assessment of the proposed acquisition focused on the supply of day-old chicks to poultry growers and processors. After careful consideration of all of the relevant factors, the Commission is satisfied that the proposed acquisition is unlikely to substantially lessen competition when compared to the situation if the proposed acquisition does not proceed.”

A public version of the written reasons for the decision will be available on the Commission's case register in the near future.

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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