Australian dairy company Bega Cheese announced on Monday its intention to seek informal merger approval from the Australian Competition and Consumer Commission (ACCC) to acquire Fonterra’s Oceania business. This move comes as Fonterra, a New Zealand-based dairy giant, aims to divest parts of its business to focus on core milk processing.
Fonterra’s Divestment Plans Worth Billions
Fonterra revealed in November 2024 that it plans to sell or list subsidiaries outside its core operations, with the potential divestment valued at around NZ$4 billion (approximately US$2.41 billion). The sale covers Fonterra’s Oceania and Sri Lanka businesses, spanning the full dairy supply chain.
Bega Cheese: A Natural Acquirer
In a statement, Bega Group described itself as the “natural acquirer” of Fonterra’s Oceania operations and expressed strong interest in working constructively with Fonterra on the sale.
Competition and Other Bidders
In early May, the ACCC began an informal review of Lactalis’s bid to acquire Fonterra’s assets. However, the French dairy company has yet to sign any agreement with Fonterra.
Other potential bidders reported by Reuters include Japan’s Meiji and Canada’s Saputo. These bids are expected to cover Fonterra’s global consumer business, including well-known brands like Mainland and Anchor butters, Kapiti ice cream and cheese, and Anlene milk powder supplements.
