Australian milk brands Big M and Dairy Farmers have been given the green light to be taken over by a Chinese company.
The whopping $600million deal was announced on Friday after the Australian Consumer and Competition Commission said they would not oppose the takeover of either of the brands by China Mengniu Dairy Company Ltd.
Following research of the potential impact on competition, Mick Keogh, the ACCC’s deputy chair, said Burra and Lion D&D are not close competitors which makes the takeover fair.
Australian milk brands Big M and Dairy Farmers have been given the green light to be taken over by a Chinese company (stock Dairy Farmers)
‘Our investigations concluded that dairy farmers are unlikely to switch between the two,’ Mr Keogh said in a statement.
‘The level of aggregation from the proposed acquisition will be relatively low, with Burra and Lion D&D combined acquiring less than 25 per cent of raw milk in Gippsland.
‘Two other large raw milk buyers remain in the Gippsland region, Saputo and Fonterra, as well as some smaller processors.’
Under the huge deal, Mengniu will acquire Australian brands including Dairy Farmers, Big M, Pura, Daily Juice and Berri.
More to come.
The whopping $600million deal was announced on Friday after the Australian Consumer and Competition Commission said they would not oppose the takeover
Source: dailymail UK
