The Australian Competition and Consumer Commission intends to oppose the proposed acquisition of Goodman Fielder’s edible fats and oils business by Cargill Australia.

Agribusiness and food giant Cargill entered into an agreement to buy the commercial edible oils and fats business of Australian food group Goodman Fielder in December for A$240m (US$219.9m).

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

However, ACCC chairman Grant Samuel said an investigation had found the deal would lead to a “significant concentration of refining assets in Australia” and remove “one of only a small number of competing refiners that offer a wide range of fats and oils products”.

Samuel said: “The ACCC also concluded that any potential competitors face significant difficulties in viably obtaining certain inputs necessary to supply a number of edible fats and oils products, limiting their ability to provide an effective competitive constraint post-acquisition.

“Inquiries by the ACCC indicated that for a number of fats and oils products, Goodman Fielder and Cargill have been each others closest competitor, and that both companies vigorously compete to supply bulk fats and oils products to a number of large customers.

“The findings led the ACCC to conclude that the proposed acquisition would likely result in a substantial lessening of competition in markets for the supply of certain refined oil products, in particular those products used by industrial food manufacturers to make a range of food products.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The basis upon which the ACCC has reached its decision will be outlined in a Public Competition Assessment, available in due course on the ACCC’s website, www.accc.gov.au, through Public Competition Assessments.