Woolworths Group Limited (ASX: WOW) is Australia’s largest supermarket chain, headquartered in Bella Vista, New South Wales. The company was founded in 1924 and has since evolved into a dominant force in the retail and grocery sector across Australia and New Zealand. Woolworths primarily operates supermarkets but also engages in liquor, general merchandise, and financial services.

As of April 9, 2025, Woolworths’ shares are trading at approximately A$30.99 reflecting investor confidence in its ongoing strategic expansions.

ACCC Approval: A Green Light for Market Expansion

The ACCC‘s decision not to oppose the acquisition was reached after an extensive investigation into the potential effects on market competition. Woolworths already owned a 23% stake in B&J City Kitchen Pty Ltd., a subsidiary of Beak & Johnston that manufactures chilled ready meals and pastries for both retail and wholesale channels. With the acquisition, Woolworths will gain full ownership of B&J’s key subsidiaries and brand portfolio.

According to ACCC Commissioner Dr. Philip Williams, although Woolworths holds considerable market power in its dealings with suppliers, the proposed acquisition was unlikely to result in a substantial lessening of competition. This is primarily due to the continued existence of alternative sales channels for rival suppliers, including other supermarket chains, convenience stores, food service wholesalers, and direct-to-consumer models. These outlets will help ensure that market diversity and consumer choice are not negatively impacted by the transaction.

Competition to Remain Intact Post-Acquisition

One of the core aspects of the ACCC’s review was evaluating whether Woolworths might use its expanded control over B&J to disadvantage competitors, either by limiting access to key products or prioritising its own brands on shelves. However, the review concluded that this scenario is unlikely. The ready meals sector in Australia features several suppliers with the scale and capabilities comparable to those of B&J, many of whom do not currently supply Woolworths and therefore remain unaffected by the acquisition.

In addition, the presence of smaller suppliers who cater to niche market segments further supports the competitiveness of the industry. These players contribute to product innovation and variety, offering high-quality options that appeal to consumers with specific dietary or culinary preferences. Consequently, even with Woolworths’ increased ownership in this space, a healthy level of competition is expected to persist.

Strategic Brand Integration Under Woolworths

The acquisition brings several prominent ready-meal brands under Woolworths’ direct control. These include Strength Meals Co., known for high-protein ready meals; Pitango, offering soups and health-conscious dishes; Simmone Logue, renowned for gourmet pies and pastries; Artisano, which specialises in premium soups and sauces; and Pasta Master, focused on chilled lasagne and pasta dishes. These brands will significantly bolster Woolworths’ position in the chilled and frozen convenience food segments.

It is important to note that not all of B&J’s assets are part of this deal. Beak & Johnston Pty Ltd., which operates a facility in Greenacre, New South Wales, and specialises in sauces, soups, and slow-cooked meats, will be excluded from the transaction. This division will continue operating as an independent business, ensuring that existing customers and supply agreements remain unaffected.

Trans-Tasman Implications and Pending New Zealand Clearance

While the ACCC has cleared the acquisition in Australia, the transaction is still under review by the New Zealand Commerce Commission (NZCC). Woolworths has applied for clearance to acquire Beak & Johnston NZ Pty Ltd., and the NZCC released a statement of preliminary issues in February 2025, inviting input from interested parties regarding the competitive impact of the deal.

The New Zealand review is a critical component of the broader transaction, especially considering Woolworths’ significant presence in the New Zealand retail sector through its Countdown supermarket chain. The outcome of this assessment will determine whether Woolworths can fully integrate B&J’s New Zealand operations into its supply chain and retail strategy.

As Woolworths continues to strengthen its portfolio through acquisitions and supply chain integration, the approval of this deal by both Australian and New Zealand regulators could have lasting impacts on the retail food landscape across both countries.