The Australian Competition and Consumer Commission expressed concerns over Louis Dreyfus Company's proposed acquisition of Namoi Cotton, citing potential competition issues in various sectors.

The regulator is worried about reduced competition in cotton ginning and lint classing services, especially in Western Australia and the Northern Territory.

The emergence of two new cotton gins adds weight to these concerns.

Louis Dreyfus' ownership stakes in multiple lint classing providers also raise alarms, particularly as the entities handle a portion of lint grading in Australia.

Louis Dreyfus has proposed a divestment undertaking, which the ACCC is considering alongside public submissions. The ACCC welcomes feedback on the issues until May 30.