Saputo-Murray Goulburn deal faces review

The Australian Competition & Consumer Commission has confirmed it will require the proposed $1.3 billion sale of Australia’s troubled major milk processor Murray Goulburn to Canadian dairy giant Saputo to be subject to a public review. By: SUE NEALES Source: The Australian Link: www.theaustralian.com.au/business/mergers-acquisitions/saputomurray-goulburn-deal-faces-review/news-story/6dc78c2ea2838b35f67d450e17513d15+&cd=1&hl=es-419&ct=clnk&gl=ar
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The need for a formal ACCC review of potential competition issues if Saputo — Australia’s fourth-largest milk processor through its ownership of Warrnambool Cheese & Butter — takes over Murray Goulburn, Australia’s second-largest dairy processor, could delay the planned quick fire sale of the financially crippled co-operative by as much as 24 weeks.
The directors of Murray Goulburn, who unanimously backed the Saputo sale, had hoped to be able to put its proposed divestment to the farmer vote in January or early February.
The potential for further delays to the disposal of the farmer-owned co-operative comes as Saputo’s chief executive, Lino ­Saputo, starts his Australian roadshow to win support from MG’s 2000 dairy farmers for his acquisition of their ownership shares. A closed meeting was held yesterday in Mount Gambier with Mr Saputo pitching his credentials to MG’s few remaining South Australian milk suppliers, with a second larger meeting to be held this morning in Warrnambool.
Other meetings will be held next week in Tasmania, Gippsland and northern Victoria.
Mr Saputo would not comment on the tenor of his pitch to win over the divided farmer vote, many of whom are devastated at the impending loss of their co-operative structure.
But the sale process cannot proceed until Murray Goulburn’s board appoints an independent expert to report back to MG’s farmer-shareholders on the merits of the Saputo $1.3 billion offer.
The Australian revealed this week that five other corporations, including China’s Shanghai Pharma, China Resources, Yili and Mengniu, and NZ processor Fonterra, had all bid more than Saputo but had not reached the final shortlist.
MG spokesman Alex Evan would not comment yesterday on the progress of the independent review, which is likely to take three to four weeks in the lead-up to Christmas.
It is understood either Grant Samuel or Ernst & Young is likely to be appointed to conduct the MG sale review, with at least another month then required before MG can call its dairy farmers in for an extraordinary general meeting.
Saputo will have to gain the support of 50.1 per cent of MG farmers for its bid to proceed.
ACCC and Foreign Investment Review Board approval for the Canadian acquisition must then follow.
But ACCC agricultural commissioner Mick Keogh said last night Saputo had not yet officially advised the commission of its intention to purchase Murray Goulburn.
“We have held (informal) discussions but the (ACCC approval) ‘clock’ has yet to start ticking,” Mr Keogh said.
“But (the Saputo proposal) will go to a public review, a minimum of six weeks, and if competition issues emerge either due to ACCC investigation or submissions from stakeholders, and they are considered likely to be problematic, a final decision could take 24 weeks maximum.”
 

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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