MONTREAL — Australia’s competition regulator has signed off on Quebec dairy giant Saputo Inc.’s proposed purchase of dairy processor Murray Goulburn Co-Operative Co. after the Canadian company agreed to sell a key plant.
The regulator had raised concerns the acquisition would give Saputo control of the two largest dairy plants in southwest Victoria and southeast South Australia.
Under the deal with the regulator, Saputo will sell Murray Goulburn’s Koroit plant within a specified period to a buyer which will need to be approved by the regulator.
The agreement also includes details of transitional milk supply arrangements and independent management for the plant until it is sold.
Saputo announced the deal to buy Murray Goulburn in October for $1.3 billion.
The deal still requires approval by Murray Goulburn shareholders and Australia’s foreign investment review board.
Companies in this story: (TSX:SAP)
The Canadian Press