Indonesia Clears AWB Acquisition by Cargill

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Friday, 03 February 2012 10:32

Written by Indra Budiari

Indonesia AWB Acquisition Cargill

JAKARTA, Indonesia Today - The Business Competition Supervisory Commission (KPPU) declared that acquisition of AWB Australia Ltd, AWB Geneva, S.A, and AWB India Private Limited by Cargill Australia Limited, Cargill International Luxembourg 2 S.a.r.l, and Cargill Mauritius Limited is not a violation of unfair business competition law in Indonesia.

The acquisition itself has been conducted on 11th May 2011, based on the Sale Agreement Commodities Management signed on 15th December 2010 by Cargill Inc, AWB Ltd, and Agrium Inc. Cargill agreed to takeover AWB business amounting AUD870 million.

Based on the examination of market concentration and efficiency and the possibility whether the corporate action is potential to prevent a similar business to enter the market, KPPU decided that the acquisition is not causing monopoly and unfair business competition.

KPPU stated in its public announcement that the examination was conducted upon the notification submitted by Cargill in June 2011. Cargill Australia Limited, Cargill International Luxembourg 2 S.a.r.l, Cargill Mauritius Limited are subsidiaries of Cargill Inc. Cargill Inc is a international food, farm, and industrial service producer that also market their products in Indonesia.

AWB Australia, AWB India, and AWB Geneva, on the other side, are subsidiaries of Agrium Inc, Canadian farm and industry product producer. The acquisition examination was conducted by KPPU since the shares takeover is not conducted between affiliated companies.

Even though this acquisition is a corporate action that committed beyond Indonesia’s jurisdiction, Cargill sales in Indonesia is more than Rp5 trillion, which fulfilled requirement as regulated in article 5 paragraph 2(b) of Government Regulation No 57/2010. (indra@theindonesiatoday.com)

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