Elders’ Delta Deal Could Raise Prices and Reduce Choice, Warns ACCC

ACCC’s Preliminary Concerns

The Australian Competition and Consumer Commission (ACCC) has publicly expressed preliminary concerns regarding Elders Limited’s proposed acquisition of Delta Agribusiness. The regulator’s Statement of Issues highlights the risk that the deal could substantially lessen competition in the supply of rural merchandise, including seed, chemicals, fertiliser, animal products, and agronomy services.

Both Elders and Delta operate extensive retail and wholesale networks across Australia, particularly in Western Australia, Victoria, and South Australia. The ACCC fears that combining these two significant players may lead to higher prices or reduced quality for farmers and rural customers, undermining competition in critical agricultural supply chains.

Focus on Local and Regional Markets

The ACCC’s concerns are not limited to a national scale but extend to specific local markets where Elders and Delta currently compete. Regions such as the North-West Wheatbelt, Central Wheatbelt, and Great Southern areas of Western Australia, as well as Northern Victoria and the Murray-Mallee region of South Australia, have been identified as potentially vulnerable to reduced competition.

Regulator Mick Keogh, Deputy Chair of the ACCC, emphasized the importance of competition in rural merchandise supply for maintaining the competitiveness of Australian farmers in global markets. The ACCC is investigating how the merged entity might affect smaller retailers and whether the acquisition would diminish effective competition at both retail and wholesale levels.

Ongoing Investigation and Next Steps

The ACCC has not yet reached a final conclusion and is actively seeking submissions from interested parties by June 12, 2025. The regulator is exploring whether alternative suppliers could effectively compete with the combined Elders-Delta entity and how the acquisition might influence the broader market dynamics.

This scrutiny reflects the ACCC’s broader mandate to ensure that mergers do not harm competition or consumer interests, especially in sectors as vital as agribusiness. The outcome of this investigation will be closely watched by investors, competitors, and rural customers alike.

Implications for Elders and the Agribusiness Sector

For Elders, the ACCC’s Statement of Issues represents a significant regulatory hurdle that could delay or alter the terms of the acquisition. The company will need to demonstrate that the deal will not harm competition or may propose remedies to address the ACCC’s concerns.

More broadly, this case underscores the delicate balance in Australia’s rural merchandise market, where consolidation can bring efficiencies but also risks reducing choice and competitive pressure. Stakeholders will be watching closely to see how the ACCC navigates these competing interests in its final determination.