US agribusiness giant Cargill has confirmed its intent to acquire the edible fats and oils business of Australian food manufacturer Goodman Fielder.
The move, reported last week, revives a deal Australia’s competition watchdog rejected two years ago.
The Australian Competition and Consumer Commission (ACCC) opposed the A$240m (US$238.5m) sale in November 2010 and said the deal would lead to a “significant concentration of refining assets in Australia”.
In a statement today (28 May), Cargill said it has requested the ACCC to conduct market inquiries about its intent to acquire the business.
“We believe market conditions have changed significantly enough over the past several months to allow us to meet the necessary regulatory approvals to acquire the business. There is a formal and confidential sales process in place, and we are not in a position to comment further,” the company said.
Goodman Fielder, which is 10% owned by Singapore palm oil company Wilmar International, put its Integro edible fats and oils business and its New Zealand milling arm up for sale six months ago. Final bids are reportedly due at the end of June.
