Regulator finds no competition concerns in Perth's cold storage market after investigation
The Australian Competition and Consumer Commission (ACCC) has cleared the proposed acquisition of Fremantle City Coldstores (FCC), a Perth-based cold storage provider, by Lineage Logistics Holdings LLC’s Australian subsidiaries.
The decision follows an investigation into whether the deal would negatively impact competition in the cold storage industry in Perth.
Both companies serve a range of clients, including food manufacturers and meat and seafood processors. The ACCC’s review focused on whether removing FCC as an independent competitor would substantially reduce competition in Perth’s cold storage market.
“During our investigation, we engaged with a range of industry participants, including customers of both FCC and Lineage. We ultimately found that the transaction would not be likely to substantially lessen competition,” ACCC commissioner Dr. Philip Williams said.
The review determined that FCC represents only a small portion of the local market, and even after the acquisition, the combined Lineage-FCC entity will face competition from major players like Americold, Golden West and other smaller suppliers.
“Our consultation with the market has confirmed that recent expansions by competitors have led to additional capacity for cold storage in Perth. This additional capacity means customers will continue to be able to switch cold storage suppliers to seek better prices or service quality,” Dr. Williams said.
