Chinese competition regulators have cleared the takeover of Goodman Fielder by Wilmar and First Pacific.
The Anti-Monopoly Bureau of the Ministry of Commerce of the People’s Republic of China (MOFCOM) granted the approval this week.
According to Goodman Fielder, approval from the Overseas Investment Office (OIO) in New Zealand is the last remaining regulatory approval yet to be obtained.
The shareholder meeting to consider and vote on the takeover is scheduled for 26 February.
Delays in gaining relevant Chinese approvals had prolonged the completion of the deal, which was first announced last year.
The deal was originally set to conclude in December last year, but was changed to March due to a three month delay in gaining approval in China.
Australia’s Foreign Investment Review Board (FIRB) and The Australian Competition and Consumer Commission (ACCC) have already cleared the takeover.
Goodman Fielder says it has also reached agreement with Coles and Woolworths to move to an everyday low pricing model on its key bread brands in favour of heavy promotional discounts.
The announcement follows a 54 per cent fall in baking earnings for the company in the half year to December to $9.1 million.
Despite this, Goodman Fielder has returned to profitability, announcing a $28.6 million first half net profit.
