Australian dairy group Murray Goulburn has withdrawn its hostile merger bid for smaller rival Warrnambool Cheese and Butter Factory.
Murray Goulburn had sought to initiate formal merger talks with WCB and looked to obtain competition clearance for the deal to progress.
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The group had also built up a stake in WCB, buying shares on-market.
However, the bid proposals have been repeatedly rejected by the WCB board, which has restricted Murray Goulburn’s share ownership to a maximum of 15% until May next year.
Meanwhile, the Australian Competition and Consumer Commission had indicated that it was concerned the proposed deal has the potential to lessen competition in the supply of milk in some areas.
As a consequence, Murray Goulburn told the ACCC that it “doesn’t intend to progress the proposed merger at this time” and had therefore withdrawn its application for competition clearance.
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By GlobalData
