Viterra has walked away from a deal to acquire GrainFlow assets in South Australia and Victoria

Viterra has dropped a bid to buy five grain handling sites across SA and Victoria from GrainFlow, after the date for a decision by the competition regulator was pushed back.

A Viterra shiploader in action.

Viterra has dropped its bid to acquire five grain handling sites across South Australia and Victoria from Cargill-owned GrainFlow, just days after the competition regulator said it was still waiting on information from the two companies.

Viterra in September announced it had struck an agreement with Cargill to acquire five storage and handling sites across SA and western Victoria, as well as a mobile ship loader.

The sites in question are the GrainFlow sites at Maitland, Crystal Brook, Mallala, Pinnaroo and Dimboola, as well as the mobile ship loader at Port ­Adelaide.

The acquisition was being considered by the Australian Competition and Consumer Commission (ACCC), with submissions on the proposed transaction due by October 24.

The ACCC said on December 13 it was “awaiting information from the merger parties”, and that it had delayed a decision on the deal beyond the initial expected date of December 19.

Viterra said in recent days it was no longer pursuing the deal.

“Viterra and Cargill have notified the Australian Competition and Consumer Commission that we have consulted in relation to the proposed acquisition for Viterra to acquire the South Australian GrainFlow sites and ship loader and the Dimboola site and have determined we will withdraw the application for review,’’ Viterra said in a statement.

“Viterra remains focused on increasing competition for SA and western Victorian growers by attracting buyers to purchase more local grain. We are continuing to look at opportunities to enhance the SA supply chain through improving efficiencies and enhancing service levels for customers.

“Cargill will continue to be a major exporter purchasing grain through the Viterra network and remains committed to increasing their volumes as a key exporter from the state.’’

The deal was opposed by fellow SA ports operator T-Ports, which told the ACCC in a submission that it had concerns including that the deal would give Viterra a monopoly on up-country grain storage on the Yorke Peninsula with resultant flow-on effects to Viterra ports.

It was also concerned that, should the deal go through, Viterra would have a “virtual monopoly at Port Adelaide, with Viterra owning three export pathways from the port’’.

“A return to the Viterra monopoly will be bad for competition and bad for growers, families and communities across the Yorke and Eyre peninsulas,’’ T-Ports chief executive Nathan Kent said at the time.

“It represents an attempt by global mega companies to eliminate local competition, which will only drive prices down at the farmgate.”

Originally published as Viterra has walked away from a deal to acquire GrainFlow assets in South Australia and Victoria