Canadian dairy company Saputo Inc won approval from Australia’s competition regulator for the planned $1 billion takeover of the country’s largest dairy processor, Murray Goulburn Co-operative, after the company agreed to sell a key asset.
The approval clears one of the last impediments to the deal which will establish the dominance of two international giants in Australia, the world’s third largest dairy exporter, amid intense competition to tap growing Asian demand.
Should it complete the deal for Murray Goulburn, Saputo will find itself in competition with the world’s largest dairy exporter, Fonterra Cooperative Group.
It will be the Canadian company’s second major investment in Australia after the A$392.7 million deal for Warrnambool Cheese and Butter Factory Company Holdings in 2013.