Australia's National Foods Bid Allowed

SYDNEY - Mar 2/05 - SNS -- San Miguel Corporation can proceed with its bid for National Foods Limited, now that the Australian Competition and Consumer Commission (ACCC) says it will not intervene.

San Miguel has made a cash offer for all the issued shares of National Foods. San Miguel's other interests in Australia include the J Boag & Son brewery and Berri Limited.

"The ACCC noted that there is no overlap between San Miguel's different activities in Australia and hence no change likely to the different markets in which these businesses operate," said ACCC Chairman, Graeme Samuel.

The ACCC also concluded that future cooperation between the businesses (as envisaged by San Miguel in its bidder statement) was not likely to damage competition in the relevant markets due to the countervailing presence of major customers and competitors.

Samuel also noted that, as with the earlier acquisition of Berri by San Miguel, this proposed acquisition raised the issue of San Miguel's relationship with the Coca Cola group of companies.

"San Miguel has restated to the ACCC that it does not have 'any intention' to enter into any contract, arrangement or understanding with Coca Cola Amatil and/or The Coca Cola Company relating to the manufacture, distribution, marketing or supply of any non-alcoholic beverage in Australia, including with regard to National Foods.

"The ACCC will, in the context of Part IV of the Trade Practices Act, very closely scrutinize any proposed contract, arrangement or understanding involving San Miguel, CCA and/or TCCC relating to the manufacture, distribution, marketing or supply of any non-alcoholic beverage in Australia, including milk and dairy products."