ACCC gives Primo, Australia all clear to acquire Hans Smallgoods, Australia

The Australian Competition and Consumer Commission (ACCC) will not oppose the proposed acquisition of certain assets of Hans Continental Smallgoods Pty Ltd by P&M Quality Smallgoods Pty Ltd (Primo).
"After extensive inquiries with market participants, the ACCC concluded that unless acquired by Primo, Hans would be likely to cease trading imminently and would be liquidated by the administrator," ACCC chairman Graeme Samuel, said.

"This position was confirmed in information provided by the administrator."

After a lengthy and unsuccessful sales process, the Hans business was placed into voluntary administration by its owner in late 2008, at which time the administrator commenced a further sales process.

In addition, the ACCC conducted detailed inquiries into the likely effect on competition if the administrator were to close the business and auction its assets in order to determine whether this would be a less anti-competitive outcome than the acquisition by Primo.

The ACCC concluded that there was only limited interest in the assets, and a likelihood that many of the assets would be lost to the industry permanently if sold at auction.

"If the Hans business had not been in imminent danger of failing, the ACCC considered that substantial competition concerns existed with the proposed acquisition by Primo," Mr Samuel said.

Primo proposes to acquire the assets of Hans Continental Smallgoods, including certain inventory and equipment located at the Blacktown manufacturing facility but excluding the Hans Fresh business (which supplies fresh pork), the Blacktown manufacturing facility and the Swickers (Queensland) abattoir and associated pig growing operations.

The Hans Fresh business and Hans interest in the Swickers (Qld) abattoir and associated pig growing operations are proposed to be acquired by a third party, the Cameron Hall McLean Group.