Australian dairy cooperative Dairy Farmers would be split in two should Parmalat and Murray Goulburn succeed with a joint takeover bid for the business.
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Details of the Parmalat-led bid for Dairy Farmers were released by the Australian Competition and Consumer Commission (ACCC) in a letter to market participants.
The conglomerate recently sought ACCC approval for their proposals, along with rival bidders National Foods and Fonterra.
“Parmalat and Murray Goulburn have formed a consortium with a view to acquiring Dairy Farmers. The proposed transaction would ultimately result in two separate dairy businesses, each with its own particular dairy industry focus and each separately controlled,” the ACCC wrote.
Although the precise split is yet to be determined, one company, to be called Fresh Dairy Co, would merge the fresh milk operation of Dairy Farmers, Parmalat and Murray Goulburn. Fresh Dairy would control an estimated 50% of Australia’s branded liquid milk sales.
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By GlobalDataUnder the proposal, Parmalat would take a 51% stake in Fresh Dairy and have operational control while Murray Goulburn would hold 49% of the newly formed business.
Murray Goulburn would acquire the non-fresh dairy operations of Dairy Farmers, including cheese, UHT milk and milk powder.
Dairy Farmers has been valued at between A$800m (US$668.8m) and A$1bn. Since putting itself up for sale, it has attracted firm offers from three groups – Parmalat/Murray Goulburn, National Foods and Fonterra – all of whom are awaiting ACCC approval.
Additional suitors for the business are rumoured to include the likes of Singapore-based Olam International and Canada’s Saputo.
