AAP
Comment sought on Dairy Farmers proposal
Thursday July 24, 06:17 PM
The competition watchdog is seeking comments on the proposed acquisition of Dairy Farmers by Italian dairy giant Parmalat and Murray Goulburn Co-operative.
The Australian Competition and Consumer Commission (ACCC) published preliminary concerns about the proposed takeover in a statement of issues, which followed earlier market inquiries.
The ACCC will accept submissions on the merger proposal by August 7 and has delayed its final decision about the acquisition until August 21.
Parmalat and local partner Murray Goulburn are proposing to split the NSW-based cooperative Dairy Farmers in two.
One company, to be called Fresh Dairy Co, would merge the fresh milk operation of Dairy Farmers, Parmalat and Murray Goulburn - controlling an estimated 50 per cent or more of the nation's branded fresh white milk sales.
Under the proposal, Parmalat would own 51 per cent of Fresh Dairy Co and have operational control while Murray Goulburn would hold 49 per cent.
The second company would produce non-fresh dairy products such as cheese, UHT milk and milk powder, and Murray Goulburn would own those operations.
Parmalat operates the Pauls brands of fresh milk in Victoria, Queensland, northern NSW, South Australia and the Northern Territory.
Murray Goulburn, which processes more than 35 per cent of Australia's milk supply, operates the Devondale and Kiewa labels in Victoria and NSW.
Dairy Farmers put itself up for sale with three bidders, including National Foods and New Zealand dairy producer Fonterra, all seeking ACCC clearance.
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