Associated British Foods is looking to acquire wheat milling and storage facilities owned by Farmers Mill in New Zealand.
On 12 June, the New Zealand Commerce Commission confirmed it received an application from ABF arm George Weston Foods – which trades as Mauri New Zealand – seeking approval for the acquisition.
Farmers Mill and New Zealand are involved in milling wheat into flour, supplying customers across the country.
Among Farmers Mill’s assets is a flour milling facility in Timaru. The company provides bulk and packaged flour to industrial food producers, bakeries, and select retailers.
Additionally, Farmers Mill supplies broll, a by-product of wheat milling, commonly used in animal feed.
Mauri operates flour mills in Auckland, Wellington, and Christchurch, providing bulk flour to industrial food manufacturers and bagged flour to wholesalers, bakeries, and supermarkets.
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By GlobalDataIts flour also supports George Weston Foods’ bakery division, producing breads and bakery goods under brands such as Tip Top and Big Ben.
On its website, George Weston Foods says its bakery division is among the largest food manufacturers in Australia and New Zealand, employing over 6,000 people across 40 sites.
Furthermore, like Farmers Mill, Mauri supplies broll for animal feed.
The New Zealand Commerce Commission operates a voluntary clearance system for mergers and acquisitions, but it retains the authority to intervene and block transactions deemed anti-competitive if clearance is not obtained in advance.
In its statement, the watchdog said: “We will only give clearance to a proposed merger if we are satisfied the merger is unlikely to have the effect of substantially lessening competition in a market.”
The news of the acquisition comes as ABF is in discussions to potentially sell its UK bakery business, Allied Bakeries.
In April, Allied Bakeries underwent a strategic review due to a “very challenging market,” according to ABF.
The UK bakery division manufactures brands such as Kingsmill, Sunblest, and Allinson’s, while also providing private-label bread products to various UK retailers and supermarkets.
