DAIRY giant Murray Goulburn has decided not to go ahead with its takeover of Warrnambool Cheese and Butter.
Murray Goulburn initiated formal merger talks with the south-west Victorian company late last year.
As part of the process MG sought clearance from the Australian Competition and Consumer Commission.
In a letter to suppliers, MG said that as there were currently no active merger talks between parties and that the WCB constitution restricted ownership to 15 per cent until May 2011, MG had withdrawn its application for clearance.
"Murray Goulburn has yesterday advised the ACCC that it does not intend to progress with the proposed merger at this time and has withdrawn its application for clearance to the ACCC,'' the letter from MG chairman Grant Davies said.
It said Murray Goulburn's Board believed a merger with WCB in future "may still be capable of delivering substantial and sustainable benefits to farmers and a stronger Australian inudstry.''
"Consequently, if in the future circumstances warrant another look at a merger with WCB, the Board reserves the right to do so and to seek a clearance from the ACCC at that time.''
MG owns a 10 per cent stake in WCB.
The letter also said MG would announce an opening price after its June board meeting.
