ACCC gives approval for French giant’s $1.5bn takeover of United Malt
The competition regulator has approved the $1.5bn takeover of United Malt by French giant Malteries Soufflet, which will leave all major Australian maltsters in foreign hands.
Australia’s competition regulator has given its tick of approval for the proposed $1.5bn takeover of United Malt by French malt giant Malteries Soufflet, which will see it grab control of the world’s fourth-largest maltster, and a key supplier of malt ingredients to the beer, craft beer and whisky industries.
United Malt announced to the ASX on Thursday that it has received written confirmation from the Australian Competition & Consumer Commission that it does not intend to conduct a public review of the proposed transaction pursuant to section 50 of the Competition and Consumer Act 2010.
The agreed takeover deal, which has won over the unanimous support of the United Malt board, means the last of the large Australian maltsters is now in foreign hands with French, Belgian and other European interests now dominating Australia’s malt industry.
Malteries Soufflet first approached the United Malt board in December with an indicative offer set at $4.15 a share, and between then and March it pushed the price up to $5 per share, which was eventually enough to get the board to proceed to discussions, which then led to the takeover offer.
Under the takeover scheme, United Malt shareholders will receive $5 a United Malt Share in cash, which represented a 45.3 per cent premium to United Malt’s closing share price on March 24, when United Malt shares entered a trading halt and the takeover bid was later revealed.
The takeover will also require merger control and antitrust competition-related regulatory approvals in relevant overseas jurisdictions and the tick of approval from the Foreign Investment Review Board.
Malteries Soufflet, one of the top three operators in the global malt industry and a subsidiary of leading European agricultural group InVivo Group, will become the world’s largest maltster if its grab for United Malt goes through.
United Malt directors have unanimously recommended its shareholders vote in favour of the takeover scheme at the scheme meeting, in the absence of a superior proposal and subject to the independent expert concluding that the scheme is in the best interests of United Malt shareholders.
If the takeover deal goes ahead, South Australia’s 162-year-old family owned Coopers Brewery will be the last Australian standing in the nation’s malt industry.
The family-owned Coopers will be on track to be the largest locally owned maltster to match its trophy of also being the largest Australian-owned beer producer. It operates a 60,000 tonne malt processing facility that cost $65m and was opened in 2017.
The Cooper’s malt facility exports around 70 per cent of its malt to Asia, with the balance used for Cooper’s own beer products.
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