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Last Updated:
Nov 28, 2009 - 10:00:09 AM
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New South Wales co-operative Dairy Farmers is persisting with its proposed demutualisation - refusing to learn from the experience of New Zealand co-operative Fonterra whose attempted capital restructure has encountered intense member opposition. Read a recent statement by Dairy Farmers.
Dairy Farmers Board today advised its shareholders that the first of a number of parties interested in acquiring or merging with the business had commenced a regulatory approval process.
National Foods yesterday requested that the Australian Competition and Consumer Commission (ACCC) indicate whether it had any concerns that would need to be overcome prior to its bid to acquire Dairy Farmers being formally assessed by the Co-operative's Board.
The ACCC has indicated that it has commenced its review for this particular party and it would take a minimum of eight weeks before issuing preliminary findings.
Dairy Farmers Chief Executive Rob Gordon said other in-market bidders with dairy operations may approach the ACCC in coming weeks regarding the commencement of similar reviews.
"Dairy Farmers Board has requested interested bidders seek the necessary regulatory clearances, including ACCC reviews, prior to it formally assessing proposals,"Mr Gordon said.
"Of course, any party bidding for Dairy Farmers that does not have existing dairy operations in Australia would not be expected to seek an ACCC review at this point. However, such parties may be required to seek the approval of the Foreign Investment Review Board (FIRB) during coming months.
"The regulatory and shareholder approval process has many separate steps spread across a number of months, ACCC deliberation is only a single step along the path towards a final board recommendation and subsequent shareholder ballot.
"As previously stated, given the high level of interest in Dairy Farmers, the Board will be methodical in its assessment of available options before it puts a recommendation to its dairy farmer shareholders."
© Copyright 2008 by Victoria Coop News
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