Goodman Fielder Ltd - s.87B undertaking

Market enquiries by the Commission determined that the proposed acquisition by Goodman of Bunge was likely to breach section 50 of the Trade Practices Act 1974. The Commission formed the view that the proposed acquisition would substantially lessen competition in the supply of flour in the southeast Australian flour market, the Western Australian flour market and the Queensland flour market. In order to address the Commission's competition concerns, Goodman undertook to divest the Albion flour mill located in Queensland, the Newport flour mill located in Victoria and the Byford flour mill located in Western Australia. Goodman was required to sell the flour milling assets during an Initial Sale Period of 6 months from the date the flour mills were advertised for sale. If no purchasers were found during the Initial Sale Period, Goodman was required to appoint an approved person within three weeks of the expiration of the Initial Sale Period to sell the flour milling assets.