Authorities block New Zealand dairy revolution

Anti-monopoly authorities have blocked merger plans that would see one huge co-operative process and sell 99% of New Zealand’s milk (see DII 64(6)9).
The Commerce Commission ruled last month in a preliminary report that the mass rationalisation, which would see eight processors exchange their current equity for shares in the new co-op, was not in the interests of New Zealand’s dairy industry.
Following the Commission’s announcement, the dairies behind the plan withdrew the proposal for revision. They said they would resubmit it later in the year in a form that addressed the watchdog’s concerns.
The agency put the annual cost of the merger to the economy