Goodman Fielder Limited has expressed its disappointment at the decision by the Australian Competition and Consumer Commission (ACCC) to oppose the sale of its commercial edible fats and oils division to Cargill Australia.

Cargill is also a refiner of edible fats and oils and is the largest supplier of crude oils to Australian refiners.

The ACCC announced yesterday that the acquisition would lead to a substantial reduction in competition in markets for the supply of certain refined oil products, in particular those used by industrial food manufacturers.

"The ACCC also concluded that any potential competitors face significant difficulties in viably obtaining certain inputs necessary to supply a number of edible fats and oils products, limiting their ability to provide an effective competitive constraint post-acquisition," said ACCC chairman, Graeme Samuel.

Goodman Fielder's managing director, Peter Margin, said that if they are unable to find a resolution to the issues put forward by the ACCC, they will retain ownership of the business and proceed to develop and restructure its operations to improve profitability.

"It is a fundamentally strong and vibrant business but has essentially been 'on hold' for the past 12 months while we have been going through the sales process," said Peter Margin, Goodman Fielder's managing director. "We will now concentrate our efforts on maximising profitability to ensure an optimum return for our shareholders."

This will involve advancing the development of a branded foodservice business, building on the company's  portfolio of retail brands such as Pampas, Praise and Meadow Lea.