The ACCC is currently seeking submissions regarding the proposed acquisition of the Lion Dairy and Dairy Drinks Pty Ltd (Lion) cheese business by Saputo Dairy Australia Pty Ltd (Saputo).

The proposed acquisition involves Saputo acquiring:

  • Lion’s cheese processing facilities at Burnie and King Island;
  • Two dairy farms on King Island; and
  • All other assets required for the manufacture and supply of cheeses produced at Burnie and King Island.

Why is the ACCC interested?

Under the informal merger review process, merging parties can request an initial review to determine whether the proposed acquisition will or is likely to substantially lessen competition (SLC) in the relevant marketplace. The ACCC will not oppose the merger, if it is satisfied that the proposed acquisition does not SLC.

One way to determine whether the proposed acquisition will create competition issues is through discussions with key businesses which operate in that particular industry.

What will the discussions focus on?

The ACCC will be interested in your views and whether the proposed acquisition will have an impact on:

  • The prices or terms of supply farmers in Tasmania receive for their raw milk; and
  • The prices for various types of cheese.

How can your business participate?

The deadline for submissions on this proposed merger is Thursday, 30 May 2019.