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ACCC approves MG takeover

By Alana Christensen

Australia's competition watchdog has approved Saputo's proposed $1.31 billion takeover of Murray Goulburn Co-operative ahead of tomorrow's shareholder vote on the sale, as long as MG's Koroit plant near Warranmbool is divested.

The ACCC had previously raised concerns about the acquisition of the Koroit plant which would have given the Canadian company control over two-thirds of milk supply in the region, leading to fears it would lessen competition and result in lower prices in the region.

Saputo chief executive officer Lino Saputo Jr welcomed the news and said the transaction is still be expected to be finalised by next month if shareholders approve the sale.

"This is an important milestone in the process of completing our acquisition of MG. We now await the Foreign Investment Review Board’s (FIRB) decision and the results of the MG shareholder vote," he said.

"We remain confident in our offer and expect to be able to finalize this transaction by 1 May 2018."

See next week's Country News for more.