Quote Originally Posted by Pmdv77 View Post
It would require a lot of capital to monopolise - taking Seeka purchase of Aongatete, the facility is probably 4mTE status quo throughput historically with max capacity being 4.5m TE (and heavily caveated in that the fruit would need to be Kiwistart due to coolstorage volume limitations). $25m / 4m TE = $6.25 per Tray. Aongatete only had around 2.5% market share.
As a listed company, Seeka has access to capital.

Looks a bit like a "rollup" strategy to me, like what Aussie listed companies often do with dentists, medical imaging companies, camping grounds etc and other small/medium sized businesses. The share market values their earnings at a higher P/E than private investors. Some of this is justified by economies of scale and reduced risk through diversification, the rest by increased prices.

No need to be a monopoly, a duopoly or even a 4-5 company oligopoly will have more pricing power.