July 11, 2012

Cargill aborting acquisition for Goodman Fielder's business

Cargill will be cancelling their plans for the acquisition of Goodman Fielder's edible fats and oils business, according to Australian government officials.

Cargill, based in Minnetonka, had sought antitrust clearance from Australian regulators to buy the business for undisclosed terms, but the outcome of that discussion wasn't disclosed.

The company previously tried to buy the Goodman Fielder assets for US$240 million, but the deal was blocked in 2010 by the Australian regulators after 11 months of consideration.

Cargill's interest in renewing the acquisition effort was made public in May, and at the time the Australian Competition and Consumer Commission said it was "considering the proposed acquisition in light of the current competitive environment and any developments in the relevant markets." It had tentatively set July 19 as the date by which it would make a decision on Cargill's bid.

Cargill said in May that it considered the Goodman Fielder edible fats and oil business as a useful addition to its growth plans in Australia, but offered no details.