ACCC flags concerns over Murray Goulburn’s dairy deal

Company News

by Rachael Jones

The Australian Competition and Consumer Commission has flagged concerns about the proposed acquisition of Murray Goulburn’s (ASX:MGC) Koroit dairy plant in Victoria.

They are worried about Saputo purchase will impact competition for farmers’ milk in the area.

Saputo’s Allansford plant and Murray Goulburn’s Koroit plant would have over two thirds of the raw milk processing capacity in south-west Victoria and south-east South Australia. The two plants currently produce the majority of raw milk in the area.

Fonterra is the only other major competitor with a processing plant in the region.

The ACCC’s is also concerned Saputo and Fonterra would be more likely to drop their prices if Saputo acquired Koroit – with limited alternatives for farmers.

Shares in Murray Goulburn (ASX:MGC) are trading 3.6 per cent lower to $0.82.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.