According to Reuters, Montreal-based Saputo has conceded it will have to divest Murray Goulburn’s Koroit processing plant to compete the AU$1.3 billion (US$1 billion) acquisition of the troubled dairy company.
Canada’s biggest cheesemaker last year agreed to pay up to AU$490 million (US$380 million) for debt-ridden Murray Goulburn, but the Australian Competition and Consumer Commission (ACCC) said the deal may leave some Victorian farmers little choice when selling their milk.
“Saputo has initiated discussions with the ACCC in respect of a divestment plan for the Koroit dairy plant in order to address the ACCC concerns and to obtain the ACCC clearance,” Saputo said in an emailed statement.
Murray Goulburn said in a statement it would “work closely with Saputo and the ACCC to seek approval of the asset sale.”
Full Content: Reuters
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