ACCC Raises Concerns Over Olam Agri Holdings Proposed Acquisition of Namoi Cotton

The ACCC has raised concerns about Olam Agri Holding’s proposed acquisition of Namoi Cotton Ltd (ASX: NAM). The acquisition would reduce competition in the supply of cotton ginning services in the Lower Namoi Valley in New South Wales and the supply of cotton lint classing services. Olam would operate four out of the five cotton gins in the Lower Namoi Valley, leaving only one alternative cotton gin operated by Australian Food and Fibre.

This could result in higher prices for cotton growers in the region. The acquisition would also give Olam ownership interests in ProClass and Australian Classing Services, which together class more than 80% of all cotton lint in Australia. The ACCC is concerned that this could negatively impact competing cotton merchants and result in growers being paid less for their cotton.  Additionally, the ACCC is examining whether the acquisition would enable Olam to increase prices for warehousing services for the export of cotton.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com