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In this episode of Data Room, Partner Neil Millar is joined by competition law expert Jennifer Hambleton to dissect the recent decisions made by the Commerce Commission (Commission) regarding the proposed acquisitions of Serato by AlphaTheta and the Foodstuffs merger. They explore the implications of these decisions on competition in the DJ software and grocery markets, the factors that led to the Commission's rejections and the emerging trends in regulatory scrutiny of mergers in New Zealand. Neil and Jennifer outline the complexities of competition law and offer valuable takeaways for businesses navigating the evolving landscape of mergers and acquisitions.

[00:49 ] Jennifer outlines the proposed acquisition of Serato by AlphaTheta emphasising AlphaTheta’s role as a global manufacturer of DJ equipment and the significance of their long-standing partnership with Serato.

[04:00 ] They discuss the Commission’s decision to decline the merger. Jennifer notes the Commission’s concerns over substantially lessening competition in the DJ software market, particularly the Commission’s view that AlphaTheta could stifle competition from rival hardware suppliers.

[07:55 ] Jennifer explains the proposed merger with Foodstuffs North and South Island, outlining their bid to merge into a single national cooperative.

[09:54 ] Jennifer outlines the Commission's main reasons for rejecting the merger, including a reduction in major grocery buyers from three to two and reduced innovation in the grocery market. 

[12:39 ] Neil and Jennifer discuss how recent decisions indicate a more conservative approach by the Commission, highlighting the importance of understanding market dynamics and potential opposition when considering mergers and acquisitions.

Information in this episode is accurate as at the date of recording Friday, 4 October 2024.

Please contact Neil Millar, Jennifer Hambleton or our Corporate or Competition team if you need legal advice and guidance on any of the topics discussed in the episode.

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Additional resources 

Commerce Commission declines to grant clearance for proposed Foodstuffs merger

Commerce Commission’s first annual grocery report concludes competition still limited

For show notes and additional resources visit minterellison.co.nz/podcasts