Associated British Foods (ABF) is actively pursuing the acquisition of wheat milling and storage facilities owned by Farmers Mill in New Zealand. This strategic move aims to enhance ABF’s presence in the food manufacturing sector.
On 12 June, the New Zealand Commerce Commission confirmed it received an application from George Weston Foods—an ABF subsidiary that operates as Mauri New Zealand—seeking approval for the acquisition.
Farmers Mill is a key player in New Zealand’s milling industry, converting wheat into flour for customers nationwide.
Among the assets held by Farmers Mill is a prominent flour milling facility located in Timaru. This facility supplies both bulk and packaged flour to industrial food producers, bakeries, and select retail outlets.
In addition, Farmers Mill produces broll, a by-product of wheat milling commonly utilized in animal feed. This further complements the company’s offerings.
Mauri operates flour mills in major cities, including Auckland, Wellington, and Christchurch. The company focuses on providing bulk flour to industrial food manufacturers and packaged flour to wholesalers, bakeries, and supermarkets.
Furthermore, Mauri’s flour distribution supports George Weston Foods’ bakery division, which produces a variety of breads and baked goods under well-known brands such as Tip Top and Big Ben.
According to its website, George Weston Foods stands among the largest food manufacturers in Australia and New Zealand, employing over 6,000 individuals across 40 sites.
Similar to Farmers Mill, Mauri also supplies broll for animal feed, thereby enhancing its product lineup.
The New Zealand Commerce Commission operates a voluntary clearance system for mergers and acquisitions but retains the authority to intervene and block transactions deemed anti-competitive if clearance is not obtained in advance.
In its statement, the watchdog noted: “We will only give clearance to a proposed merger if we are satisfied the merger is unlikely to have the effect of substantially lessening competition in a market.”
The news of the acquisition emerges as ABF engages in discussions to potentially sell its UK bakery business, Allied Bakeries.
In April, Allied Bakeries underwent a strategic review due to a “very challenging market,” as stated by ABF.
The UK bakery division is responsible for manufacturing notable brands such as Kingsmill, Sunblest, and Allinson’s, while also supplying private-label bread products to various UK retailers.