November’s top stories: ADM’s Graincorp bid blocked, Heinz’s facility expansion

Australia opposes ADM’s A$3.4bn Graincorp takeover deal

The Australian Government has rejected US-based company Archer Daniels Midland’s (ADM) proposed takeover of grain handler GrainCorp, in a deal which was valued at A$3.4bn ($3.1bn).

The proposed deal had attracted concern from stakeholders and the broader community that it would not be in the national interest.

Treasurer Joe Hockey said he made the decision after the Foreign Investment Review Board (FIRB) was split on whether to approve the deal.

Frutarom announces takeover of flavour firm Aroma

Frutarom has announced the takeover of Guatemalan flavour company Aroma in a $12.5m deal, as it continues to implement a rapid growth strategy with an emphasis on emerging markets.

Established in 1990, Aroma is engaged in the development, manufacture and marketing of flavours primarily for beverages, dairy products, confectionery, snacks and convenience food.

The company caters to manufacturers in Guatemala, Honduras, Costa Rica, El Salvador and other markets, primarily in Central America.

Heinz to expand frozen food processing facility in Ohio

American ketchup maker H.J. Heinz has announced plans to expand its frozen food processing facility in Massillon, Ohio, with an investment of $28m.

The project is expected to create about 250 jobs in a three-year period, beginning next year.

Heinz corporate and government affairs senior vice president Michael Mullen said Massillon will be a flagship for the company’s North American business and will become a ‘Frozen Food Center of Excellence’.

Dutch firm TOP launches consortium to market safe raw milk

TOP, a Netherlands-based food technology company, is working on a consortium to market raw milk that is safe for consumption.

The company stated that tests performed on raw milk treated with preservation technologies, such as Pascalisation and PurePulse were very encouraging.

Raw milk is currently not intended for sale in retail channels due to its possible contamination with pathogenic bacteria.

FDA to regulate use of trans fats in processed foods

The US Food and Drug Administration (FDA) is in the process of phasing out the use of trans fat in processed foods, following a preliminary determination based on available scientific evidence and the findings of expert scientific panels.

Experts have revealed that partially hydrogenated oils (PHOs), the primary dietary source of artificial trans fat in processed foods, are not ‘generally recognised as safe’ for use in food.

Trans fat intake leads to an increase in low-density lipoprotein (LDL), or ‘bad’ cholesterol, which poses a risk of coronary heart disease.

Premier Foods considers strategic alternatives for bread unit

UK-based Premier Foods is reportedly considering strategic alternatives for its struggling bread business, and has approached several private equity groups about a possible sale of a stake in the business.

The company is seeking an investor for its bread business, which manufactures Hovis, Mother’s Pride and other bread brands.

As part of the process, Premier has hired financial advisory firm Ondra Partners to assist in developing investment options for the bread business, including co-investment by a partner.

Murdock completes Dole Food takeover

Dole Food, a US-based food company, has announced that its chairman and CEO David H. Murdock has completed the acquisition of all of its outstanding shares, in a deal valued at more than $1.6bn that includes debt, fees and expenses.

The merger agreement was closed following the company’s stockholder approval at a special meeting held on 31 October 2013.

Under the agreement, Murdock, which earlier owned 40% of Dole stock, will pay $13.50 in cash for each share for all the outstanding shares of common stock.

Oxford Frozen Foods to establish New Brunswick processing facility

Oxford Frozen Foods, a Canadian wild blueberry grower and processor, is set to establish a new processing facility in the Acadian Peninsula, New Brunswick, with an investment of C$50m.

The 12,600m² plant is part of the company’s C$184m project to construct a new processing facility and develop wild blueberry fields in the region.

During a ten-year period, the project is expected to create up to 300 jobs and is expected to contribute up to $8.6m a year to the province’s gross domestic product.

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