Parmalat gets ACCC approval for $70m Australian expansion
Italian-based dairy business Parmalat has today received regulatory approval for their proposed $70 million purchase of a number of the dairy assets held by National Foods.
The Australian Competition and Consumer Commission advised that they would not oppose the deal, which was brought about due to the takeover of Dairy Farmers last year by Kirin subsidiary National Foods.
The manufacturing operations had combined revenue of around $200 million in the twelve months to 30 June 2008, with tangible assets of around $60 million at that date. As a result, the deal will substantially increase Parmalat’s presence down under, adding almost 26 per cent to their revenue derived from Australian operations – based on last year’s figures.
Parmalat, whose Chief Executive in Australia resigned earlier this month, will acquire 12 National Foods depots in the NSW and ACT and 13 Dairy Farmers depots in South Australia, as well as the Lidcombe processing plant. The maker of Pauls milk will also receive a 2 year licence to manufacture, distribute and sell the Daisy Fresh and Pura range of fresh white milk in NSW and the ACT along with a perpetual licence for the Oak and Just Natural flavoured milk brands in NSW, SA and the ACT. The majority of Dairy Farmers’ fresh white milk brands in South Australia will also be under a perpetual license arrangement.
The deal involves a $70 million cash payment as well as the “assumption of certain liabilities”.