The Australian Competition and Consumer Commission advised that they would not oppose the deal, which was brought about due to the takeover of Dairy Farmers last year by Kirin subsidiary National Foods.
The manufacturing operations had combined revenue of about $200m in the 12 months to 30 June 2008, with tangible assets of about $60m at that date. As a result, the deal will substantially increase Parmalat’s presence in Australia, adding almost 26% to its revenue derived from Australian operations (based on last year’s figures).
Parmalat, whose chief executive in Australia resigned earlier this month, will acquire 12 National Foods depots in the NSW and ACT, and 13 Dairy Farmers depots in south Australia, as well as the Lidcombe processing plant. The maker of Pauls milk will also receive a two-year licence to manufacture, distribute and sell the Daisy Fresh and Pura range of fresh, white milk in NSW and the ACT along with a perpetual licence for the Oak and Just Natural flavoured milk brands in NSW, SA and the ACT. The majority of Dairy Farmers’ fresh, white milk brands in south Australia will also be under a perpetual licence arrangement.
The deal involves a $70m cash payment as well as the ‘assumption of certain liabilities’.
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