Aussie regulator to not oppose Coles' buy of Saputo milk processing plants (updated)

Saputo

30/11/2023 23:12

(Adds details from ACCC statement, deal background)
       Dec 1 (Reuters) - Australia's competition watchdog on
Friday said it will not oppose the proposed acquisition of two
milk processing plants by retailer Coles Group  COL.AX  from
local dairy processor Saputo. 
    Coles, the country's No. 2 grocer, had in April acquired 
two automated milk processing facilities from Saputo Dairy
Australia for A$105 million ($69.34 million) in a move to expand
its milk supply.
        The Australian Competition & Consumer Commission (ACCC)
said the acquisition is unlikely to result in a substantial
reduction in competition after taking into consideration various
concerns from different stakeholders.
  
        "We explored the industry’s concerns very closely
through discussions with farmers and their representative
bodies, and conducted a detailed review of Saputo and Coles’
internal documents and their incentives,” said ACCC deputy chair
Mick Keogh.
  
        The ACCC also said that other companies including
Lactalis and Bega Cheese in dairy markets would continue to be
competitors for raw milk in central New South Wales irrespective
of the proposed deal.
  
        
  
 ($1 = 1.5142 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Maju
Samuel)
 ((Rishav.Chatterjee@thomsonreuters.com;))