By James Wells
SYDNEY: An industry analyst who has previously worked in the small appliance category says the ACCC has made the right decision today by denying the merger between Sunbeam and Breville as the company would have owned 60 per cent of most small appliance categories.
“I agree with the ACCC’s finding. In the majority of the categories, they would have had 60 per cent market share any way you cut it,” the analyst told Current.com.au
“The competitive spirit that is generated by these two great Aussie companies at the end of the day creates great products. The competitiveness between Sunbeam and Breville has been proven on the world market, therefore in Australia, merging those two companies would lessen that impact.
“The competitiveness of that blue versus red was such a motivating factor for new product development that if you did diminish that relationship, the end result is less competition and less competitive products in the Australian market because it is impossible to measure the drive that that battle creates.”
Ian Campbell the managing director of GUD Holdings (Sunbeam’s parent company) was unavailable for comment this afternoon. Former Sunbeam CEO and current Breville group general manager – marketing and product development, Jonathan Lord was also unavailable for comment.