Australia: Foreign Investment Review Board approves proposed acquisition of United Malt by Malteries Soufflet

Australia�s Foreign Investment Review Board has granted approval for the proposed acquisition of ASX-listed international agricultural player United Malt by French company Malteries Soufflet, The Market Herald reported on October 12.

United, which ultimately provides the feedstock needed to produce beer and other alcohol at the commercial and boutique level, first revealed its takeover offer in July this year. It is the world�s fourth-largest commercial maltster.

Malteries Soufflet pitched an A$1.5 billion offer at the company and United quickly accepted. Malteries Soufflet is a French company owned by an even larger agricultural giant called InVivo Group, which pulls in billions of euros in revenue each year.

The move is perhaps an interesting one given that since listing less than five years ago, United Malt�s share price was actually at an all-time high in pre-trade today.

But the deal itself may be part of that momentum. On the day it was first announced, United Malt was the ASX�s top gainer.

Certainly incentivising shareholders will be the fact that United shareholders will receive A$5 each for every share held.

But there�s also the issue that a secondary approval still must come from a second entity: the Anti-Monopoly Committee of Ukraine.

As of October 11, United�s Chairman Graham Bradley AM said that approval had not been received. When, exactly, approval could be received is unclear, given the fact Ukraine is still at war.

The landing page for the Committee�s website seemingly hasn�t been updated since 2019.

At any rate, InVivo said in July its $1.5 billion offer fairly reflected United�s value, and, implied further revenues.

InVivo Group CEO Thierry Blandinieres told reporters earlier this year his ultimate goal is to acquire United Malt so InVivo can get closer to China and Oceania markets.

United operates in Australia and New Zealand, where it owns Barrett Burston and Cryer Malt. Barrett operates three malting plants in Australia while Cryer targets the IPA and craft brewery market.

In the UK, United Malt owns a company called Bairds Malt; in North America, United owns Country Malt, Great Western Malting, and Canada Malting. The company�s CEO flagged his retirement almost exactly a year ago.

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