Food and dairy company Goodman Fielder (ASX:GFF) formally scrapped plans to sell its $240 million edible fats and oils business to food group Cargill after the Australian competition regulator continued to oppose the deal.

The company said on Friday the Australian Competition and Consumer Commission (ACCC) confirmed it will not support the sale, despite further submissions.

"As such, Cargill and Goodman Fielder have now agreed to formally terminate the sale agreement entered into in December 2009," Goodman Fielder said in a statement.

The antitrust watchdog first blocked the sale in March, citing it would lessen competition.

Goodman Fielder said it anticipated the decision and was restructuring the business to improve profitability.

"Considerable progress has already been made on refocussing and repositioning the business," Goodman Fielder said.

Goodman Fielder posted a profit $165.8 million in the year to 30 June 2010.

Further details will be unveiled at its annual meeting on November 25.