This morning Goodman Fielder Limited (ASX: GFF) announced to the market that the Australian Competition and Consumer Commission would not oppose Wilmar and First Pacific's takeover of the company.
Based on market analysis the Commission found that Wilmar and Goodman Fielder would 'continue to be competitively constrained by alternative existing and potential suppliers' and thus would be unable to successfully drive market prices higher.
It was further noted that vegetable oil is considered a commodity by consumers and has low brand loyalty, making it easier for retailers to find alternative suppliers if necessary.
The ACCC thus announced that it has no objection and will not oppose the proposed takeover.
With shares in Goodman Fielder trading at $0.62 at the time of writing, nearly 10% below Wilmar's offer price of $0.675, traders have the opportunity to make a quick buck with the takeover expected to be finalised by the end of 2014.
Timing will be an issue with the Chinese Ministry of Commerce yet to make a ruling on the matter, but given ACCC approval I can't see the takeover not going ahead.
Speculative-minded readers may also like to check out The Motley Fool's free special report on three of Australia's best speculative resource companies hoping to hit the big time – in fact, one of them already has!
Find our more in our FREE report by entering your email address in the link below, and discover why these 3 companies could be set to win BIG!