Australian dairy cooperative Murray Goulburn has said that it has called off its merger talks with rival Bonlac Foods.
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The two cooperatives commenced talks in January in what was the second attempt in two years by Murray Goulburn to take over Bonlac.
“While Murray Goulburn recognises the potential benefits that could be derived from creating an expanded Australian dairy farmer co-operative, Murray Goulburn has concluded that the synergies from the transaction are insufficient to provide improved returns to existing Murray Goulburn farmers and indeed to justify the risks associated with consolidating the two businesses in their entirety,” Murray Goulburn said in a statement, as quoted by Reuters.
Bonlac is 25% owned by New Zealand dairy cooperative Fonterra.
Almost two years ago, Murray Goulburn made a bid for Bonlac, valuing it at A$880m (US$520.6m), in an attempt to block Bonlac’s tie-up with Fonterra.
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