9 October 2025

ACCC clears Elders’ Delta acquisition, NSW Farmers urges price watch

| By Edwina Mason
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Delta Agribusiness

The ACCC has today announced it will not oppose Elders Limited’s proposed acquisition of Delta Agribusiness after accepting a court-enforceable undertaking that commits Elders to divest six Delta stores in Western Australia. Image: Delta Agribusiness.

Delta Agribusiness, headquartered in Young, is set to be acquired by Elders after the Australian Competition and Consumer Commission (ACCC) today announced it has approved the $475 million merger, contingent upon Elders divesting six Delta stores in Western Australia.

The acquisition, first announced in November 2024, represents a major consolidation in Australia’s agricultural supply sector and is expected to be completed on 3 November.

Delta operates a national network of 68 locations, supplying farmers with agricultural chemicals, seed, fertiliser, animal health products and related services, including agronomy and farm management advice.

Elders, one of Australia’s largest rural suppliers, provides a similar range of products and services through its retail and wholesale networks with the acquisition adding Delta’s approximately 40 independent wholesale customers to Elders’ portfolio.

The ACCC first flagged concerns about the merger in its Statement of Issues released in May, warning it could significantly reduce competition in rural merchandise and agronomy services across multiple states, particularly in local markets such as northwest Victoria, South Australia’s Murray-Mallee, and Western Australia’s Northern and Central wheatbelts and Great Southern regions.

READ ALSO Grain producers’ association opposes Elders’ bid for Delta Agribusiness, citing competition concerns

ACCC deputy chair Mick Keogh said the watchdog’s review considered the likely effect of the acquisition on competition in each area where both companies operated retail stores.

“We examined the strength of competing retailers, the particular geographic features, and the size and type of farms, among other factors,” he said. “We also engaged with farmers, competing retailers, wholesale suppliers, buying groups and industry bodies.”

Mr Keogh noted that competition in the rural merchandise sector was highly localised.

“Differences in farming across local areas and the importance of local relationships mean that rural supply is more complex than other retail sectors,” he said.

“Following our review, we were concerned about potential substantial lessening of competition in several Western Australian locations,” Mr Keogh said.

To address these concerns, Elders has agreed to divest six Delta stores in Western Australia with Independent Rural Pty Ltd to purchase the Dalwallinu and Kalannie stores, while EE Muir & Sons Pty Limited (Muirs) will acquire the Albany, Hyden, Manypeaks and Wellstead stores.

The ACCC concluded that, with these divestments in place, the acquisition was unlikely to substantially lessen competition in other local markets, at broader regional, state or national levels, or in wholesale supply in WA.

“Ultimately, the ACCC did not consider the proposed acquisition was likely to substantially lessen competition in any relevant market with the undertaking provided by Elders,” Mr Keogh said.

Despite the ACCC’s approval, NSW Farmers has urged close monitoring of the merger, particularly in NSW, where both Elders and Delta are dominant.

Vice president Rebecca Reardon said farmers feared the consolidation could drive up the cost of essential farm inputs.

“We’ve had many farmers telling us they think this merger will spike prices for critical farm supplies, and could create a monopoly in parts of NSW where Elders and Delta are the only ag suppliers,” Mrs Reardon said.

“With input prices and inflation soaring in recent years, having two or three outlets competing for the same products has made a real difference in keeping costs down.

“Now there’ll be little chance to shop around, and we’re really concerned about what this lack of competition could mean for the cost of feeding and clothing the nation,” she said.

Mrs Reardon said it was disappointing no divestment undertakings were required in NSW.

She stressed that the ACCC must closely monitor how the merger affects farm supply prices, and intervene if necessary.

“Australians need their farmers to feed them and as farmers we’re telling the ACCC they need to protect competition in the farm supply market,” she said.

“Farmers deserve fair prices for agronomy services, agency support, and essential agricultural supplies. The proof will be in the pudding over the next year as bills reflect the impact of this merger,” Mrs Reardon said.

READ ALSO Southern NSW farmers demand immediate relief in face of worsening drought

Elders managing director and CEO Mark Allison has welcomed the ACCC’s approval.

“We are pleased with the outcome of the ACCC’s deliberation and are looking forward to supporting Delta in the next phase of its growth post-completion,” he said.

Mr Allison said the company had always maintained the transaction would not lessen competition in rural merchandise markets and would ultimately benefit farmers.

“It is our intent to leverage the respective strengths and local knowledge of both companies to offer the best service and solutions for our farming clients,” he said.

Further information, including the ACCC’s court-enforceable undertaking, is available on the ACCC’s public register under Elders Limited – Delta Agribusiness.

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