Coles Group subsidiary Chef Fresh has secured approval from the Australian Competition and Consumer Commission (ACCC) to acquire Jewel Fine Foods, which has been in voluntary administration since April 2019.

Jewel Fine Foods produces chilled ready meals from its facilities in Banksmeadow, New South Wales (NSW). Coles is said to be Jewel’s major customer.

It also has supply arrangements with other major national retailers in the country.

ACCC commissioner Stephen Ridgeway said: “Coles’ acquisition of Jewel ensures that there will still be two major suppliers of chilled ready meals.

“We are pleased that the administration process will end with Jewel’s business continuing as a going concern and competing with other suppliers.

“The ACCC investigation focused on whether other retailers would be foreclosed if Coles acquired the business. We found that Woolworths already has supply arrangements with Jewel’s competitor, B&J City Kitchen and that other retailers have other options.”

Through the acquisition, Cole Group aims to expand its product portfolio with the addition of branded and private-label chilled ready meals.

Last September, ACCC opposed the sale of Jewel to B&J City Kitchen and said that the deal would substantially lessen competition for the supply of chilled ready meals.

B&J City Kitchen is reported to be one of the major suppliers of chilled ready meals in Australia.

Ridgeway added: “The continuation of Jewel’s production of chilled ready meals is a better outcome for competition than the liquidation of the assets.

“The ACCC investigation commenced before the current increase in demand for groceries. However, we consider our decision remains appropriate.”