1st September 2008
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Company Announcement
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Additional regulatory review of AH Marks acquisition
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Nufarm announced today that the UK Office of Fair Trading (OFT) advised the company late Friday (UK time) that it has referred certain aspects of Nufarm’s acquisition of the AH Marks business to the UK Competition Commission for further inquiry.
Nufarm completed the acquisition of AH Marks, a UK based manufacturer and supplier of phenoxy herbicides, in March of this year.
The UK Competition Commission will investigate if the acquisition gives rise to competition concerns relating to the supply of relevant products within the UK market. 2007 sales of AH Marks products into the UK that were the focus of the OFT’s review were £1.4 million, constituting a small proportion of the total 2007 revenues of £62 million. The Competition Commission investigation is expected to be completed by February 2009, during which time Nufarm will defer any further integration of the AH Marks business.
Nufarm is surprised with this decision but remains very confident that the acquisition of AH Marks helps deliver important benefits to both distribution and grower customers in the UK. The company will work co-operatively with the Competition Commission – as it has with the OFT - to clarify and address any relevant issues that remain to be investigated.
The company said regulatory authorities in Australia (Australian Competition and Consumer Commission) and in the US (Federal Trade Commission) are also reviewing certain competition related aspects of the acquisition, and management similarly remains confident of clarifying and addressing any issues.
The postponement of business integration initiatives is not anticipated to materially impact Nufarm’s projected earnings contribution from the acquisition in either the financial year completed on July 31, 2008 or in the current financial year.
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Further information:
Nufarm Limited
Robert Reis
+61 3 9282 1177 |
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