MG handicapped in WCB race ANNABELLE BEALE16 Jan, 2014 04:00 AM Print Increase Text Size Decrease Text Size Comments 0 Concerned Dairy Farmers of Central and East Gippsland have accused the ACCC of hampering growth within the Australian dairy industry. They openly stated they want to grow, so to grow they will most likely attract milk away from MG Concerned Dairy Farmers of Central and East Gippsland have accused the ACCC of hampering growth within the Australian dairy LATEST Farms merit drought aid: Joyce National Parks makes a killing GMO-free status irks Tas farmers Dairy triplets defy odds Heat likely to affect property sales Export lamb in demand DAIRY FARMERS have condemned regulators for giving Murray Goulburns (MG) $533 million Warrnambool Cheese & Butter (WCB) takeover bid a potential losing handicap in the bidding war against rival Saputo. In a lengthy submission to the Australian Competition and Consumer Commission (ACCC) Provisional Issue List this week, the group - named Concerned Dairy Farmers of Central and East Gippsland - accused the ACCC of hampering growth within the Australian dairy industry by casting doubt on the co-operatives offer. Our fear is that Saputo will pull milk supply out of MGs Koroit factory pool that will weaken the efficiency and affect every dairy farmer across Victoria, Maffra dairy farmer and group member Tim Dwyer said. The submission acknowledged the unlikeliness of MG acquiring more than 90 per cent of WCB shares, but stated that unless there was consolidation within the industry, the decline in the dairy industry would continue. It accused the WCB board of defying economic theory with its support of Saputo, suspecting self-interest was at play. It is for parochial reasons - perhaps to secure jobs for their executives - that they are supporting Saputo, Mr Dwyer said. You have to ask yourself why they are supporting a lower offer. Obviously the executives will keep their job under Saputo, but in the long run is that good for the industry? However, WCB strictly denied the accusations. In a statement released on December 20 it had earlier explained its support for Saputos superior offer based on comparative assessment of value, certainty and timing. Although MGs offer price of $9.50 is 50 cents higher than Saputos offer price of $9, MGs offer remains highly conditional and therefore carries significant risks and uncertainties for WCB shareholders, WCB chairman Terry Richardson said. In particular, if (Australian Competition) Tribunal (ACT) authorisation is not received or if the 50pc minimum acceptance condition is not satisfied, WCB shareholders will receive nothing for their WCB shares under MGs offer.
Posted on: Wed, 15 Jan 2014 20:15:35 +0000
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