A bidding war for Namoi Cotton, the ASX-listed operator of the country’s largest network of cotton gins, may have hit a wall after the competition regulator said a sale to France’s Louis Dreyfus would “substantially lessen competition”.

The agribusiness giant this month lobbed a 67¢-a-share bid for Namoi, trumping a 66¢-a-share offer from Singapore’s Olam. It was the fifth offer in a bidding war that began last year. Louis Dreyfus already owns 16.99 per cent of Namoi.