Olam Agri has also offered to divest its interest in various cotton businesses in order to gain approval from the ACCC over its takeover of Australian ginning business Namoi Cotton Limited.
This comes over a week since the corporate watchdog gave the thumbs to Louis Dreyfus Company’s shareholder takeover of Namoi Cotton, after accepting a court-enforceable undertaking from the LDC to divest its shares in ProClass Pty Ltd, and to terminate its joint venture with WANT Cotton Pty Ltd.
In its latest supplementary bidders statement, Olam Agri confirmed it has proposed a remedy to address the ACCC’s stated concerns, including offering to divest its interest in a gin in the region of relevance identified by the ACCC, as well as Olam Agri’s interest in ProClass.
“Olam Agri continues to closely and constructively engage with the ACCC in relation to its inquiries and to address the ACCC's stated concerns,” the company wrote. “Olam Agri continues to consider there are good reasons why its proposed acquisition of Namoi will not substantially lessen competition.
“As at the date of this document [August 12], the ACCC’s proposed date for its decision in respect of Olam Agri’s proposed acquisition of Namoi has been delayed as a consequence of a request for further information from the ACCC to Olam Agri in relation to the proposed remedy, with the ACCC to announce a proposed decision date in due course.
“Olam Agri encourages Namoi shareholders to not accept the offer from Louis Dreyfus Company Melbourne Holdings Pty Ltd in advance of the ACCC making its decision in relation to Olam Agri.”
Since the issuing of both takeover offers by both parties, shareholders appear to be reluctant to accept either offer. As of July 22, Olam has a 6.02 per cent share in Namoi after starting from scratch, while LDC’s shares have bumped up to 19.02 per cent since starting from 16.99 per cent.