NewsBite

John Durie

ACCC to decide on Saputo Lion cheese bid

John Durie
Lion Specialty Cheese’s plant in Burnie will be included in a proposed sale of oeprations in the state to Canada’s Saputo. Picture: Chris Kidd
Lion Specialty Cheese’s plant in Burnie will be included in a proposed sale of oeprations in the state to Canada’s Saputo. Picture: Chris Kidd

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.

John Durie
John DurieBusiness columnist

John Durie has been a business reporter for 40 years, starting his career in the Canberra Press Gallery in 1980. John has worked as a Chanticleer Columnist for the AFR, a business columnist for the New York Post, and also worked in Paris.

Add your comment to this story

To join the conversation, please Don't have an account? Register

Join the conversation, you are commenting as Logout

Original URL: https://www.theaustralian.com.au/business/companies/accc-to-decide-on-saputo-lion-cheese-bid/news-story/5e754595d26895319aca5b4c9393dcd3