Cargill's Goodman Fielder Acquisition Rejected By Australian Competition Commission

Goodman Fielder and Cargill have been each other's closest competitor, the ACCC found, and the proposed merger would reduce competition in supply markets for refined oil products used by industrial food manufacturers.

1 Apr 2010 --- The Australian Competition and Consumer Commission has said it will oppose the sale of Goodman Fielder's edible fats and oils business to Cargill Australia on the grounds it would lead to a "significant concentration" of refiners in the fats and oils industry.

"The ACCC also concluded that any potential competitors face significant difficulties in viably obtaining certain inputs necessary to supply a number of edible fats and oils products, limiting their ability to provide an effective competitive constraint post-acquisition," said ACCC chairman Graeme Samuel in a statement.

Goodman Fielder and Cargill have been each other's closest competitor, the ACCC found, and the proposed merger would reduce competition in supply markets for refined oil products used by industrial food manufacturers.

Cargill responded by stating that it remains committed to serve its customers in Australia and New Zealand and to grow its local business. "We respect and accept the ACCC's decision on the proposed acquisition, and are now considering the implications and next steps," said Bram Klaeijsen, president and regional director, Cargill Asia-Pacific. "We remain fully committed to serve our customers in Australia and New Zealand, and grow our local business. We are confident that with our advanced fats and oils technologies, broad portfolio of food ingredients and application expertise, we will continue to provide value to our customers in the region and enable sustained profitable growth of our food ingredients business."