The Australian Competition & Consumer Commission (ACCC) has announced that Accolade Wines can proceed with its planned acquisition of wine brands from Pernod Ricard. The ACCC, responsible for enforcing Australia’s competition and consumer protection laws, stated that it "will not oppose the proposed acquisition of Pernod Ricard Winemakers by Australian Wine HoldCo Limited, through its subsidiary Accolade.”
Dr. Philip Williams of the ACCC explained in the announcement, "Following our investigation, we consider it unlikely that the proposed acquisition would significantly restrict competition in wine processing, packaging services, or wholesale wine distribution." This assessment relates to Section 50 of the Competition and Consumer Act, which prohibits acquisitions that could impede market competition.
"We consider the proposed acquisition is unlikely to substantially lessen competition, and similarly is unlikely to substantially impact competition in the wholesale supply of wine."
"Based on our investigation," Dr. Williams continued, "we consider the proposed acquisition is unlikely to substantially lessen competition in wine processing and packaging services, and similarly is unlikely to substantially impact competition in the wholesale supply of wine." Dr. Williams added, "We found that the acquisition would not materially alter competition in grape acquisition markets where Accolade and Pernod Ricard currently overlap." The ACCC concluded, "Additionally, we did not identify any incentive or ability for Accolade to engage in conduct that would significantly lessen competition in the wholesale supply of wine."
During its investigation, the ACCC consulted numerous market participants, including grape growers, competing winemakers, wine merchants, and industry associations. Further details on the investigation can be found here.
Pernod Ricard had announced the sale of the brands on July 17, but at the time, due to antitrust review, it was expected that the final closing would not occur until the second half of 2025. The review now appears to be concluding more quickly than initially anticipated.
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