Cobram Estate Olives has announced that the completion of its acquisition of California Olive Ranch (COR) is unlikely to occur by the initially projected date of February 28. The delay is attributed to an ongoing antitrust approval process being conducted by the US Department of Justice (DOJ). Cobram Estate Olives is an ASX-listed olive oil producer and marketer with operations in Australia and the United States. The company is known for its production of high-quality extra virgin olive oil.
The company remains optimistic that it will receive the necessary DOJ approval by March 12, with the final settlement expected to occur within two weeks following this approval. Cobram Estate stated that it has been actively cooperating with the DOJ, responding to requests for information related to the COR transaction as part of the standard antitrust review. The company described these conversations with DOJ attorneys as productive and has pledged to continue assisting in the review process.
Cobram Estate has emphasised the potential benefits of the transaction for Californian olive growers, the olive oil industry as a whole, and consumers. The company’s confidence in the DOJ’s eventual approval is underpinned by these anticipated advantages. The acquisition of California Olive Ranch is seen as a strategic move to strengthen Cobram Estate’s position in the olive oil market.
Despite the news of the delay, the market reaction was relatively mild. Shares in Cobram Estate Olives were down 0.8 per cent in recent trading, indicating that investors remain largely unfazed by the temporary setback. The company continues to work towards finalising the acquisition and integrating California Olive Ranch into its operations.
