The Australian Competition & Consumer Commission (ACCC) said on July 29 it is seeking views on a proposed undertaking offered by Nutrien Ltd. in relation to its proposed acquisition of Ruralco (GM March 1, p. 1). The proposal seeks to address some of the preliminary competition concerns identified by ACCC in June (GM June 14, p. 25).
Under the proposal, Nutrien’s Landmark unit would divest three rural merchandise stores located in Broome, Alice Springs, and Hughenden to a purchaser approved by the ACCC. Nutrien told analysts on July 30 that it expects the Ruralco acquisition to close late in the third quarter.
“The release of undertakings for public comment should not be interpreted as a signal that the ACCC will ultimately accept them and clear the transaction,” said ACCC Deputy Chair Mick Keogh. “The undertaking seeks to address only local issues in Broome, Alice Springs, and Hughenden, and does not seek to address possible issues at the national or wholesale levels.
“At the national level, the transaction combines two of the biggest suppliers of rural merchandise to farmers,” he added. “It also combines two of the largest wholesalers to independent retail outlets. We are continuing to investigate the potential impact of this transaction at the national and wholesale levels.”
ACCC said parties wishing to make submissions should do so by Aug. 5.
Nutrien’s Landmark supplies rural merchandise through its 225 retail stores across the country, as well as supplying independent stores on a wholesale basis. It also provides wool brokering, livestock agency and export services, real estate agency, and agricultural insurance brokering services. Landmark has been part of rural Australia (through predecessor organizations) for more than 150 years.
Ruralco, a publicly-listed company in Australia, has been operating (through predecessor organizations) for more than 150 years. Ruralco provides a very similar range of services to Landmark. It operates 106 rural merchandise stores nationally (operating under a number of brands, but notably Roberts and Rodwells), and also supplies member stores via its wholesale arm, CRT. These members may be branded as either CRT or Town & Country. In addition to those other services offered by Landmark, Ruralco also offers water brokering services.