The ACCC is due to decide on Thursday whether to let Canadian dairy giant Saputo proceed with its proposed $280 million purchase of the Lion specialty cheese business.
Some in the trade suggest the purchase will be subject to the divestment of Saputo’s Smithton plant in Tasmania.
The market is already highly concentrated, with Fonterra controlling 55 per cent of the state’s dairy production. Saputo, through its Murray Goulburn acquisition, holds 15 per cent of the market, while Lion has 10 per cent. The rest shared by smaller players and food giant Mondelez.
The acquisition will give Saputo control of Lion’s King Island dairy and plant, as well as its Burnie plant.
Last year the ACCC let Saputo buy Murray Goulburn, subject to sale of the Koroit plant near Warrnambool in Victoria.
Saputo is the world’s biggest cheese producer with strong market share in North America.
Tasmania accounts for around 10 per cent of the Australian dairy output.
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