Goodman Fielder had agreed to sell its edible fats and oils operations to global food and agricultural products group Cargill for AUS$240 million.
The deal included a 10-year supply agreement under which Cargill would supply refined fats and oils products to Goodman Fielder for Goodman’s Home Ingredients brands and businesses. The sale included four fats and oils refining facilities.
The Australian Competition and Consumer Commission said yesterday it will oppose Cargill’s plan to buy Sydney-based Goodman Fielder’s unit, saying it would reduce competition in the market.
"The ACCC investigation found that the proposed acquisition of the Goodman Fielder assets by Cargill would lead to a significant concentration of refining assets in Australia and remove one of only a small number of competing refiners that offer a wide range of fats and oils products," it said in a statement.
Failing a resolution of these issues Goodman Fielder would retain ownership of the business
and proceed to develop and substantially restructure its operations to improve profitability.
“We respect and accept the ACCC’s decision on the proposed acquisition, and are now considering the implications and next steps,” Bram Klaeijsen, president for Cargill Asia-Pacific, said in a statement today.
"While our major focus at Goodman Fielder will continue to be on the development of our outstanding retail branded product portfolio, we will move separately to redevelop the commercial business," a spokesman at GF said.