J&P Turner (JPT) is seeking clearance from the Commerce Commission to acquire up to 100 per cent of Turners & Growers Fresh (T&G Fresh). 

JPT, via its company Fresh Direct Ltd, wholesales and distributes locally grown and imported fresh fruits and vegetables throughout New Zealand from six locations. It also offers ancillary services, including packing, ripening, temperature-controlled metro transport, and processing of certain fruits.

T&G Fresh grows, transports, imports and wholesales fresh fruits and vegetables in the country via its network of wholesale markets, distribution centres and associated trucking. The company also provides transportation services for third-party customers and growers. 

The Turner family, which operates JPT, previously left T&G in the 1990s when the majority shareholding was sold to UK investment company Guiness Peat Group, who subsequently sold it to Germany’s BayWa AG. 

The proposed acquisition would see T&G’s wholesale operations return to the Turner family and to New Zealand ownership. 

The two companies are currently negotiating a sale and purchase agreement. The purchase price and expected completion date were not disclosed.

In the application, the companies said the merged entity would be severely constrained in its ability to increase prices or reduce quality. 

They provided several reasons for this, including that they are not each other’s closest competitors and have different business models. Growers and retailers could also switch or flex their demand to one or more of multiple competitors.

In addition, barriers to entry and expansion are low, allowing competing wholesalers to easily expand their service offerings.

The Commerce Commission said it will only give clearance to the merger if it is satisfied that the deal is unlikely to have the effect of substantially lessening competition in a market. 

The agency is expected to make its decision by August 26. 

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