The sale of the former Murray Goulburn milk processing plant, at Koroit, to Canadian dairy processor Saputo has been finalised.
Bega Cheese paid approximately $250million in cash for the plant.
The sale was required, following an undertaking to the Australian Competition and Consumer Commission, after Saputo bought Murray Goulburn in May.
At the time, the ACCC was accused of uneccessary interference in Canadian dairy giant Saputo’s purchase of Murray Goulburn.
Dairy farmers in Victoria’s south-west said the ACCC should have stayed out of the proposed sale.
The ACCC said it delayed its decision to agree to the sale, because it wanted feedback from farmers, before making a decision.
ACCC chairman Rod Sims raised concerns if Saputo boughtr MG, as it would mean both Koroit and Warnambool Cheese and Butter’s Allansford factory would become part of the same company.
He said he was concerned there may be a lessening of competition for milk, resulting in lower payments for farmers.
The ACCC said if Saputo retained Koroit, one company would own about two thirds of the milk processing capacity in south west Victoria.
