Final call for industry feedback on Saputo acquistion of Lion Dairy and Drinks
A Chinese suitor was turned away by the Australian Government earlier this year. Now Saputo is inching closer to taking over Lion Dairy and Drinks.
FARMERS have until tomorrow to air their views on Saputo’s proposed acquisition of Lion Dairy and Drinks to the competition watchdog.
In recent weeks, the Australian Competition and Consumer Commission has scrutinised the Montreal-based dairy giant’s plan to buy the beverage conglomerate from Kirin, after a putative Chinese takeover hit political hurdles.
And the deadline for farmers to make comment to the ACCC is 5pm tomorrow.
Mengniu Dairy’s $600 million planned purchase of Lion Dairy failed to secure Foreign Investment Review Board approval, with Federal Treasurer Josh Frydenberg labelling the move “contrary to the national interest” in August.
Originally known as National Foods, Philippines-based corporate giant San Miguel took over the Australian brand in the mid-2000s before Japanese brewer Kirin swooped in 2007.
Kirin then acquired the Lion Nathan brewery network in 2009, setting up the Lion Dairy raft of brands such as Pura milk, Dare iced coffee and Yoplait yoghurt.
United Dairyfarmers of Victoria president Paul Mumford said while a Saputo takeover of Lion was not ideal, much of corporate Australia had failed to see the investment opportunities presented by agriculture.
“We want to see that processor continue in some form. We don’t want that stainless steel to go to waste,” he said. “Yes, there are concerns about market concentration, given Saputo already has a sizeable footprint (in the dairy sector).
“It’s a great pity that our superannuation sector, one of the largest in the world, doesn’t recognise the value of Australian agriculture. Quite often, we see Canadian super funds, other super funds, recognising that potential, whereas Australia’s corporate sector does not.”
Last year, Saputo acquired Lion’s speciality cheese assets from Kirin which included brands such as Mersey Valley and Tasmanian Heritage.
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