THE Australian Competition and Consumer Commission is examining a move by Baiada Poultry to buy Bartter Enterprises.
Bartter owns the Steggles brand and is the second-largest producer and marketer of chicken and turkey products in Australia, behind Inghams. Baiada is the third largest.
The ACCC is concerned that if Baiada acquired Bartter, it and other processors would be in a position to reduce fees to growers, without facing competitive restraints.
It is also concerned that the acquisition would lead to increased prices for a "substantial proportion" of chickenmeat sold in Australia.
Baiada has about 2200 employees and has processing plants in Sydney, Tamworth, Adelaide and Laverton.
Bartter employs more than 4500 people and has processing facilities in Victoria, Western Australia, Queensland and NSW.
Submissions to the ACCC close on January 27 and a final decision is expected to be made in February.
