French firm Louis Dreyfus Company has acquired Australia's oldest and biggest cotton ginning business, Namoi Cotton, for about $160 million.A foreign agricultural giant has acquired Australia's oldest and biggest cotton ginning business for about $160 million, ending almost a year of bidding wars and intervention by the competition watchdog.
The new owner has committed to retaining the Namoi brand and retaining the Toowoomba headquarters and all the key staff, Mr Watson said.LDC managing director for Australia Tony Geitz said it had enjoyed a strong association with Namoi for about 10 years and that it would be "business as usual". "We very much see that as an important thing for the industry in the future, so we'll continue to invest."
This drew the attention of the Australian Competition and Consumer Commission , which raised concerns that both companies' acquisition plans would lessen competition in the cotton industry. It also holds a 20 per cent interest in classer, ProClass, and has a joint venture with WANT Cotton for the operation and management of a cotton gin near Katherine in the Northern Territory.Olam withdrew its bid earlier this month, clearing the path for LDC.