Saputo has agreed to sell it has the cheese processing plant inside Koroit, Australia to Bega Cheese for as much as AUD250 million ($184 million), in order to meet concerns raised by the Australia Competition and Consumer Commission (ACCC).
In May, the ACCC claimed that Saputo’s $1 billion purchase of Murray Goulburn could tremendously reduce competition for milk products in south-west Victoria and south-east South Questionnaire, as the company’s milk producing sites would account for over two-thirds of the raw milk handling capacity in the region.
This sale will need to address these concerns C although deal is subject to endorsement from the ACCC C and Saputo claims that this deal should close in your second fiscal quarter of 2019.
Bega Cheese says that the purchase will substantially strengthen its milk running operations, and suggested it can further expand the production potential of the facility in the future.
The business also claimed that all 108 employees currently working to begin would retain their postures once the transaction was finalized.
Bega Cheese executive chairman advised ABC news: “We’re investing in a facility in a really strong milk area where we have been amassing milk for almost 10 years, which means you cements our presence there.
“And it also does so with a very good quality area, so we’re very pleased to be successful in making that acquisition.
“We will be hoping and encouraging farmers to come across and become Bega suppliers, but as thing deal there is a milk deliver guarantee from Saputo that a component of supply will be from them.”