Fonterra believes New Zealand Dairies (in receivership) will struggle to find a new owner quickly if Fonterra's bid for the company is denied.
The commerce commission today released an issues paper, outlining the key aspects it will take into consideration when considering whether to approve Fonterra's proposed merger.
Fonterra, the world's largest dairy exporter, applied last week for commission approval to buy the assets of Waimate-based New Zealand Dairies.
NZD has been collecting raw milk from farmers in South Canterbury and North Otago since 2007.
Its parent company was recently declared bankrupt in Russia and placed into receivership here in May.
The commission says it will consider the existing competition, potential competition and the situation if this sale is not approved.
Fonterra considers there is only a "small probability that an alternative purchaser to Fonterra would be found, particularly one who would be able to complete a timely purchase".
The exporter also believes most suppliers in the South Island will still have a choice of processor, should the merger be accepted.
The public have until July 20 to have their say.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Tim Hunter on why Veritas is doing it the hard way
- Matthew Hooton on whether Steven Joyce will be the next national leader
- Rodney Hide on why all city planners should be fired
- Nevil Gibson discusses his latest Editor's Insight on films
- The NBR crew throw around some of the week's top stories
- Rob Hosking breaks down the political and economic week that was
- "A tragedy" - David Farrar on his disappointment with Simon Bridges
- New F&P product pipeline exciting, says Macquarie senior investment adviser Brad Gordon
- Taupo Motorsport Park executive director Tony Walker on the park's rebranding
- NZIER senior economist Christina Leung on why she does not think the OCR will hit 2%
- NBR's Cameron Officer talks about the NBR Car of the Year 2015
- John Barnett on Brewer: ‘Boy, has he got a bit to learn’