Fonterra has received an approval from Commerce Commission and it can now purchase the Studholme milk processing plant near Waimate, a new report has unveiled.
Studholme, the Russian-owned factory, was put in receivership since May i. e. for some four months, as per the findings. The company worth $108 million had been commissioned in September 2007.
It has been found that the company, dealing as New Zealand Dairies Ltd (NZDL), along with two other firms was assessed by Commerce Commission. And according to Chairman Dr. Mark Berry, the comparison of acquisition by Fonterra with other bidders has led them to conclude that purchase by Fonterra would not bring a reduction in competition.
The three companies had accrued $37.8 million since 2007 in trading losses and some $61.7 million, including an amount of $42.1 million for unsecured creditors, was owed to creditors. The price, the report says, is not yet disclosed for the latest purchase.
However, it is being said that the decision taken by the Commission assures certainty for suppliers of NZDL. "It is of huge relief to farmers and sharemilkers caught up in the receivership that Fonterra can now complete its purchase of the Studholme plant", said Willy Leferink, Chairman of Federated Farmers Dairy.
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