ACCC delays decision over Coles purchase of Saputo plants

The ACCC has pushed back a decision on the $105 million Saputo-Coles dairy processing deal, after a call was initially expected last week.

Australia’s competition watchdog has delayed its call over one of the biggest deals in Australian dairy.

The Australian Competition and Consumer Commission was set to deliver its verdict on Thursday over the proposed sale by Saputo of its Sydney and Melbourne processing sites to supermarket giant Coles.

Australian Dairy Farmers president Rick Gladigau made an eleventh-hour plea last week to the ACCC to oppose the $105 million deal.

Yesterday, he welcomed the watchdog’s move to allow more time to consider its response.

“It is important the ACCC has the time to thoroughly review the potential anti-competitive impacts the acquisition would have on dairy farmers and the broader marketplace,” Mr Gladigau said.

“We look forward to a decision being made and having greater certainty.”

ADF president Rick Gladigau.

Originally established by Murray Goulburn in 2014, the Laverton North and Erskine Park facilities produce fresh milk for Saputo’s Devondale brand, and for other brands, including Coles.

A spokesman for the ACCC said the watchdog could not comment on the matter as the review was ongoing.

A new date for a decision is yet to be confirmed by the ACCC.

A Coles spokesperson said the supermarket: “continues to work with the ACCC, and is providing further information in relation to the acquisition of the two Saputo Dairy Australia milk processing plants.”

In July, Coles chief executive Leah Weckert said the supermarket was confident any outstanding concerns could be addressed.

“From Coles’ perspective, we see no lessening of competition in any relevant market,” Ms Weckert said.

The sites employ about 48 workers, who Saputo said would receive an offer to transfer their employment to the Coles Group.