THE AUSTRALIAN Competition and Consumer Commission has delayed the release of its final report into Elders Limited’s proposed acquisition of Delta Agribusiness.

Originally set to be released on August 21, the competition watchdog updated its website stating that the timeline had been “suspended” to “allow time to consider information provided by the parties”.

This is the second time the process has been delayed, with the ACCC also suspending and amending the timeline in March “pending receipt of information from the parties”.

The ACCC released a statement of issues on May 29, outlining preliminary concerns over the deal and warning it could significantly reduce competition in rural merchandise and agronomy services across multiple states.

These concerns included heightened competition risks in several local markets, including north-west Victoria, South Australia’s Murray-Mallee, and Western Australia’s Northern and Central Wheatbelt, and Great Southern.

The ACCC also flagged the potential for reduced competition at the wholesale level in WA, and whether alternative suppliers would be able to compete effectively with Elders, should it acquire Delta.

In this market, Delta has 41 affiliated independent stores, while Elders has seven as owner of AIRR, and Nutrien-owned CRT also has seven.

The ACCC also raised broader concerns about the wider impacts of the potential duopoly, which could result from Elders’ acquisition of Delta.

It cited that together, the companies would have 310 retail stores across Australia, comparable only to Nutrien at more than 380 stores, with the next-largest rural merchandise retailer, being AGnVet with approximately 70 retail stores across Vic and New South Wales.

Elders announced it has entered into an agreement to acquire Delta Agribusiness for $475 million in November.

Delta provides rural products and advisory services to customers in NSW, Queensland, Victoria, SA, and WA.

The acquisition will add Delta’s network of 68 locations and approximately 40 independent wholesale customers to Elders’ existing portfolio.

All of Delta’s wholesale customers are located in WA.

Other larger rural merchandise chains in Australia which compete with Delta and Elders include Nutrien, with over 380 stores; AGnVET, at 70 stores; and Muirs, with 42 stores.

In a statement published to the ASX, Elders said that it and Delta had “been engaging constructively with the ACCC to address its outstanding competition concerns”.

“Elders remains confident that the transaction will bring benefits to local agricultural markets through the expansion of price-competitive private label options, increased technical expertise and greater product and service offerings for farmers,” the statement said.

“Elders and Delta will continue to work towards a timely completion date.”

Source: ACCC, Elders