SAPUTO has lodged a proposed divestment plan with the Australian Competition and Consumer Commission (ACCC) for its Koroit dairy plant to obtain clearance for its purchase of Murray Goulburn.
The announcement comes after the ACCC raised a red flag about the sale.
The ACCC said its sole concern was in relation to MG’s Koroit dairy plant in western Victoria, in particular the impact the acquisition will have on competition for farmers’ milk in the area.
The ACCC said Saputo’s Allansford plant and MG’s Koroit plant would have more than two thirds of the raw milk processing capacity in the south-west Victoria and south-east South Australia region.
The proposed divestment of the Koroit plant by Saputo does not have any impact on the terms of the sale, including the consideration to be received by MG and Saputo’s previously announced milk supply commitments. The sale remains subject to approval by the Foreign Investment Review Board.