Elders will need to sell some of its rural supplies stores to win approval for a $475 million buyout of rival Delta Agribusiness after the competition regulator raised concerns that the deal would lead to higher prices and less choice for farmers.

In a blow to Elders’ growth plans, the Australian Competition and Consumer Commission said on Thursday it would conduct further investigations into the deal first announced in November, where No. 2 player Elders would buy the No.3 operator, Delta.