Overview of ACCC consultation on Olam's proposed divestiture undertaking

The Australian Competition & Consumer Commission (ACCC) is seeking views on a proposed court-enforceable divestiture undertaking offered by Olam Agri Holdings Limited, and its subsidiaries Olam Agri Australia Pty Ltd and Queensland Cotton Corporation Pty Ltd, in relation to its proposed acquisition of Namoi Cotton Limited (ASX:NAM). The proposed acquisition raises preliminary competition concerns in the supply of cotton ginning and cotton lint classing services, prompting Olam to offer a divestiture undertaking to address these concerns.

ACCC Chair Gina Cass-Gottlieb's assessment of Olam's proposed undertaking

In assessing Olam's proposed undertaking, we will need to be satisfied that it will effectively address our competition concerns in the supply of cotton ginning services in the Lower Namoi Valley in New South Wales and the supply of cotton lint classing services Australia-wide, as well as being structured in a way that is practical and effective.

Summary of ACCC consultation and outlook

The ACCC is consulting on Olam's proposed divestiture undertaking in response to preliminary competition concerns arising from the proposed acquisition of Namoi Cotton Limited. The proposed divestiture includes Olam's Queensland Cotton gin at Wee Waa in New South Wales and its 20 per cent share of ProClass Pty Ltd. The ACCC remains concerned about the potential impact of the acquisition on coordination in cotton lint marketing, cotton warehousing, and regional ginning markets. The ACCC invites submissions on the proposed undertaking by 11 October 2024, and it continues to evaluate the risk and potential impact of less vigorous competition between suppliers post-acquisition.