BUSINESSDESK: A phantom bidder claiming to have offered a better deal for New Zealand Dairies' south Canterbury milk powder plant is urging the anti-trust regulator to investigate the sale process where Fonterra emerged as the top suitor.
In a confidential submission on Fonterra's application for clearance to buy NZ Dairies, the rival called on the Commerce Commission to "investigate the fairness of the sale process", which it says put "significant pressure" on suppliers to accept the Fonterra proposal.
The unnamed bidder claimed to have trumped Fonterra's undisclosed winning bid.
"The receivers may have elected for other reasons not to pursue the offer but the perception that the Fonterra offer was the best is not correct and we request that this be corrected," the submission said.
"The Fonterra offer was clearly not the best offer on the table, but the receiver chose not to pursue other options and yet Fonterra claim not to have pursued the acquisition. This process should be investigated," it said.
Fonterra bought the plant out of receivership in June after NZ Dairies' Russian parent Nutritek was declared bankrupt earlier in the year. Nutritek was set up in 1990, with operations in Russia and the Ukraine before it expanded its footprint into New Zealand.
The unnamed rival was told its bid was unsuccessful as it needed Overseas Investment Office approval, the submission said.
It referred to an international equity investor whose chief executive and main shareholding are New Zealanders who are "extremely keen and interested to invest in New Zealand".
The bidding company was "formed to invest in and operate dairy farming and dairy processing assets".
The investors have primarily been in energy and recently showed an interest in pastoral farming and dairy production, the submission said.
The bidder "has for the past three years been researching the New Zealand dairy industry and is very interested to invest", it said.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Winston's choice: Jacinda Ardern poised to become prime minister
- NZ's top tech companies generate $10b in annual sales in 2017: TIN100 report
- Kraft Heinz buys ANZ Cerebos assets for $A290 million
- Super Fund CEO pay rise 'too large,' Joyce says
- Nats baulking over Winston Peters' demand for more ministers
Most listened to
- Rob Hosking on Winston's choice
- IDC's Chayse Gorton on Kiwis' online vs offline shopping preference - and how it's out of step with the rest of the world
- NZSA chief executive Michael Midgley on how he will vote undirected Fletcher proxies
- Restaurant Brands' Grant Ellis discusses progress at the fast food group
- Rob Hosking says politicians need to understand the effect their promises will have on what the Reserve Bank has to do
- AMP Capital investment manager Jonathan Armstrong discusses why an expansion is right for Tauranga's Bayfair shopping centre
- NBR Radio: The best interviews, with Grant Walker — updated daily