ACCC in swift decision on Coles’ purchase of Jewel Fine Foods

ACCC breaks speed records to potentially clear Coles’ acquisition of ready-made food producer Jewel Fine Foods.

The ACCC is moving quickly to assess Coles’ purchase of Jewel Fine Foods. Picture: Hollie Adams

The competition watchdog is breaking all speed records to potentially clear Coles’ acquisition of ready-made food producer Jewel Fine Foods, with a decision due on Thursday, just eight days after the deal was concluded.

The Australian Competition and Consumer Commission can clear deals without a public inquiry, but this time it notified the investigation last Thursday and set a deadline on Monday for comment and a decision due on Thursday.

The Sydney-based Jewel makes prepared meals and Coles is one of its biggest customers, along with other supermarket chains.

It went in administration early last year after a $70 million expansion crippled the company financially.

Rival producer B&J City Kitchen tried to buy Jewel last year but was knocked back in September by the ACCC because it would have combined the top two players in the $600 million ready-to-eat prepared food market.

Woolworths owns 23 per cent of B&J.

The ACCC clears over 90 per cent of deals without any public investigation but when it starts an inquiry it can run for some time. This is shown by Bunnings’ attempt to buy Adelaide Tools for around $20 million which was notified last November and is now due for a decision by Tuesday next week, five months later.

The Coles-Jewel deal is almost certain to be cleared but the ACCC has opened the issue to ensure it has not missed any angle.