Melbourne, July 9 - National Foods has proposed to sell two milk processing plants to help win clearance to bid for Australian dairy producer Dairy Farmers, Australia's competition watchdog said on Wednesday.
National Foods, owned by Japan's Kirin Holdings, has proposed to make a joint bid with Australia's Warrnambool Cheese and Butter Factory for Dairy Farmers, which is valued at up to A$1 billion ($952 million).
"The ACCC has not yet formed a view on whether or not it has any competition concerns in relation to the proposed acquisition," the Australian Competition and Consumer Commission said in a letter on Wednesday.
Along with selling two plants which serve New South Wales, South Australia and the Australian Capital Territory, National Foods said it would license out certain brands of milk and flavoured milk, including its Pura brands and Dairy Farmers brands, in those markets.
The commission on Wednesday sought comments by July 16 on National Foods' plan.
"The decision to consult on the proposed undertaking does not necessarily mean the ACCC will require divestitures or, in the event that any competition concerns are identified, that any aspect of the proposed undertaking would be acceptable to the ACCC," it said.
The National Foods-led team is one of two groups left bidding for Dairy Farmers after New Zealand dairy cooperative Fonterra withdrew a solo bid. The other bidder is Italian food group Parmalat.
A Kirin spokesman said last week National Foods and Fonterra had discussed the possibility of working together if National Foods' bid was successful. ($1=A$1.05)