Bega Cheese has openly expressed its desire to acquire Fonterra’s Oceania operations, even alleging it was barred from the bidding process. This stems partly from an ongoing legal dispute with Fonterra over the use of the “Bega” brand in Australia, under a long-term agreement. A recent New South Wales Supreme Court ruling did not clarify whether the sale of the brand would impact this agreement, with Fonterra appealing the decision, arguing the sale doesn’t constitute a change of control.

Despite Bega’s public announcement in mid-June about its imminent application to the ACCC for informal merger clearance, nearly a month later, ACCC deputy chair Mick Keogh confirmed that the review has not officially begun. The regulator is awaiting further clarification on several issues from Bega. This delay raises questions about the pace and priority of Bega’s application compared to other interested parties, particularly given Bega’s status as an Australian-owned company not requiring Foreign Investment Review Board (FIRB) approval.

Bega, supported by its largest shareholder Tattarang, asserts that its acquisition of Fonterra’s Oceania assets would significantly enhance outcomes for both the company and the broader Australian dairy industry. Its chief executive, John Hartman, emphasized the benefits of local ownership, stressing deep roots in regional communities and a long-term commitment to dairy farmers, workers, and consumers. This sentiment aligns with previous instances where Australian ownership was prioritized, such as Bega’s successful acquisition of Lion Dairy and Drinks after a Chinese bid was rejected.