Saputo’s dairy deal turns sour

CANADIAN dairy giant Saputo has started talks with Australia’s competition watchdog on a possible sale of the Koroit dairy processing plant in Victoria.

Dairy processor Murray Goulburn currently operates the plant.

The Australian Competition and Consumer Commission last week expressed concern that Saputo’s proposed takeover of Murray Goulburn could have a negative effect on competition for farmer’s milk in one region.

The commission said it has concerns about the combination of Saputo’s Allansford plant in western Victoria, and Murray Goulburn’s Koroit plant, also in western Victoria.

The ACCC believed that Saputo owning the Koroit plant would substantially lessen competition for the acquisition of dairy farmers’ raw milk in the region.

“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 a statement yesterday.

“Saputo will continue to work closely with Murray Goulburn and the ACCC to seek approval of the proposed acquisition.”

The ACCC has invited submissions from interested parties in response to its initial statement of issues on Saputo’s proposed takeover of Murray Goulburn, and a final decision is expected on March 29.

“Saputo will continue to work closely with Murray Goulburn and the ACCC to seek approval of the proposed acquisition” SAPUTO STATEMENT YESTERDAY AAP