Namoi Cotton Ltd (AU:NAM) has released an update.
The Australian Competition and Consumer Commission (ACCC) has raised preliminary concerns over Louis Dreyfus Company’s proposed acquisition of Namoi Cotton Ltd, fearing it could reduce competition in the cotton ginning and classing markets, particularly in northern Western Australia and the Northern Territory. The ACCC is examining the deal’s potential to lessen competition and increase prices or reduce services, as the acquisition would give LDC control over the only two cotton gins in the region and over 80% of cotton lint classing services in Australia.
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