Saputo plans asset sale to get deal done

Canadian dairy giant Saputo proposes to sell the Koroit dairy processing plant in order to get approval from the ACCC for its takeover of Murray Goulburn.

The ACCC last week expressed concern about Saputo's proposed takeover of Murray Goulburn. (AAP)

Canadian dairy giant Saputo has proposed to sell Victoria's Koroit dairy processing plant in order to get the competition watchdog's approval for its takeover of Murray Goulburn.

The Australian Competition and Consumer Commission last week expressed concerns about the combination of Saputo's Allansford plant in western Victoria, and Murray Goulburn's Koroit plant, also in western Victoria.

The ACCC said Saputo's proposed takeover of Murray Goulburn could have a negative effect on competition for farmer's milk in south-west Victoria and south-east South Australia.

After entering talks with the ACCC about a divestment plan for the Koroit dairy plant, Saputo has now lodged a proposed undertaking to sell the plant, in order to gain clearance for the deal, Murray Goulburn said on Tuesday.

Murray Goulburn said the new proposal does not have any impact on the terms of the deal, or what Saputo will pay Murray Goulburn.

It plans to hold a meeting for a vote on the deal on April 5, if the ACCC has cleared the deal by that time.