SYDNEY (Oct 21): Australia's foreign investment watchdog has approved an Asian consortium's Aus$1.34 billion (US$1.18 billion) bid for Goodman Fielder, the food manufacturer said Tuesday.

The approval brings Singapore-based agribusiness Wilmar International and Hong Kong investment manager First Pacific Company one step closer to taking over the company, although the deal still needs approval from China's commerce ministry.

"The Foreign Investment Review Board has notified Wilmar International and First Pacific Company Limited that it has no objection to the proposal from Wilmar and First Pacific to acquire 100 percent of Goodman Fielder via a scheme of arrangement," the company said in a statement.

"Goodman Fielder advises that Wilmar and First Pacific are continuing to progress the other regulatory approvals required in connection with the scheme."

The Australian firm -- which owns food brands including Helga's, MeadowLea and Wonder White -- said in September that the process of obtaining approval from China "is likely to take longer than initially anticipated".

The bid was approved by the Australian Competition and Consumer Commission in late September.

A shareholder meeting to approve the offer of 67.5 cents a share is expected to take place in the first three months of 2015, Goodman Fielder said.

The company's board previously accepted a takeover offer of 70 cents a share from First Pacific and Wilmar in mid-May, which valued the company at Aus$1.37 billion.

But after due diligence checks, the two Asian companies pushed for a lower price.

Goodman Fielder reported a net loss of Aus$405.1 million in the year to June 30 as it recorded a pre-tax impairment of Aus$358.2 million, mostly from its baking division.

The loss followed a net profit of Aus$102.5 million in the previous year.