The Australian Competition and Consumer Commission is investigating the impact of a potential merger between Murray Goulburn Co-operative and Warrnambool Cheese & Butter Factory, even though Warrnambool has emphatically rejected Murray Goulburn's latest offer.
The commission is seeking feedback from farmers, rival dairy processors and wholesale customers after commencing market inquiries this week, The Australian Financial Review reports.
The ACCC is assessing the impact of a merger on farm-gate prices and competition for milk, barriers to entry for new processors, and the ability of wholesale customers to find new suppliers for private label and branded dairy products.
Murray Goulburn's proposed $4.35 a share offer, which values Warrnambool at $174 million, is conditional on ACCC clearance.
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