Merger authorisations
Application for Merger Authorisation of Warrnambool Cheese and Butter Factory Company Holdings Ltd
Australian Competition Tribunal
Authorisation Application
Withdrawn
Summary
Murray Goulburn applied to the Tribunal under s 95AV of the Competition and Consumer Act seeking authorisation of its proposed acquisition of Warrnambool Cheese and Butter. This is the first application for authorisation since the power to grant merger authorisations shifted from the ACCC to the ACT in 2007. Authorisation must not be granted unless the Tribunal is satisfied that the acquisition is likely to result in such benefit to the public that it should be allowed. The Tribunal must consider as benefits:
- significant increase in the real value of exports
- significant substitution of domestic products for imported goods
- all matters relevant to the international competitiveness of any Australian industry
Other factors may also be considered.
In accordance with s 95AX of the Act, the Tribunal gave a copy of the application to the ACCC which has submitted an issues paper.
The application was withdrawn on 23 January 2014; rival bidder, Canadian dairy company, Saputo, made a successful bid.
Key documents
Key documents can be found on the Tribunal's authorisation page. They include:
- Murray Goulburn's authorisation application (redacted)
- ACCC issues paper issues paper (78 pages) and revised issues paper (13 January 2014)
- Affidavit of Geoffrey Carter (representing WCB) seeking permission to intervene (granted by Justice Mansfield on 9 December - para 10)
- Submissions of WCB
Commentary
- John Durie, 'Competition Tribunal's move in the dairy takeover game is unprecedented' (The Australian, 11 January 2014)
- Tin Binsted and Jared Lynch, 'ACCC has concerns over Murray Goulburn's takeover of WCB' (SMH, 8 January 2014)
- Blair Speedy, 'Dairy battle takes political twist as tribunal calls for input on Warrnambool takeover' (The Australian, 8 January 2014)