Canada: Antitrust regulator not to challenge takeover of Canada Malting parent by Malteries Soufflet
The owner of one of Canadas major commercial maltsters says its takeover by a major French peer wont be challenged by Canadas antitrust regulator, the Canadian Cattlemen reported on August 18.
United Malt Group, whose Canadian assets operate under the Canada Malting banner, last month locked in on a previously announced deal to sell itself to Frances Malteries Soufflet for A$1.5 billion (C$1.3 billion).
Sydney, Australia-based United Malt and Soufflet reported Aug. 7 they now have written confirmation from Canadas Commissioner of Competition that the office does not intend to make an application to challenge the transaction.
Thus, United Malt said, the condition for Canadian regulatory approval will be satisfied if the commissioners notice isnt reversed by Aug. 23.
United Malt reported separately on August 14 that it and Soufflet now also have confirmation from the United Kingdoms Competition and Markets Authority (CMA) that the CMA has no further questions in respect of the proposed transaction.
Much like the no-action letter Canadian regulators provide in such cases, no further questions is the CMAs standard response when the authority doesnt intent to mount a public inquiry into the deal, United Malt said.
The worlds fourth largest commercial maltster, United Malt makes bulk malt for brewers, craft brewers, distillers and food companies and has 12 processing plants in Canada, the U.S., Australia and the U.K., with combined malting capacity of about 1.26 million tonnes. It had been owned by Australias GrainCorp since 2009 and was spun off in 2020.
United Malts Calgary-based Canada Malting unit, which alone produces about 400,000 tonnes of malt per year, includes malting plants at Calgary, Montreal and Thunder Bay, nine country elevators in the Prairie provinces, and Country Malt facilities at Delta, B.C., Brampton and Calgary.
Soufflet, which has 28 malt houses in Europe, Asia, Africa and Latin America with combined production capacity of 2.36 million tonnes per year, has been an arm of French agribusiness InVivo since last year. InVivo has previously said it plans to be the worlds top malt firm within five years.
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