The Australian Competition and Consumer Commission (ACCC) says it will not stop Ruralco acquiring Elders Rural Services.
 
Both companies have a network of agri-product retail outlets and offer a range of financial services including insurance.
 
“The ACCC concluded the proposed acquisition was unlikely to substantially lessen competition in any relevant market,” the commission says.
 
Last month Ruralco MD John Maher revealed the company was assessing Elders’ business but would only pursue a deal if it added shareholder value.

Elders says the sales of its rural services business and automotive divisions is well under way, with final bids for the rural arm “expected shortly”.

Elders Rural Services includes a general insurance joint venture 75% owned by QBE. Its share of earnings from the business in the six months to March 31 was $3.1 million, up from $3 million in the previous corresponding period.

Overall, the rural division posted an underlying loss of $7.7 million compared with earnings before interest and tax of $21.1 million a year earlier.

The loss was driven by poor seasonal conditions and foreign exchange movements.