The article details a multi-front battle for Fonterra’s assets. Media reports out of Australia indicate that a consortium led by Bega Cheese and potentially a European cooperative like FrieslandCampina has made a A$2 billion bid for the Oceania business. This is one of three players making a bid, alongside the world’s largest dairy company, Lactalis, and Japanese food company Meiji Holdings. The competitive landscape highlights the intense interest in Fonterra’s portfolio of popular dairy brands, including Western Star butter and cheeses like Perfect Italiano and Mainland.

A significant hurdle for one of the bidders has been cleared, placing them at the front of the queue. The Australian Competition and Consumer Commission (ACCC) has indicated that it will not oppose Lactalis’ proposed acquisition of Fonterra’s consumer, dairy ingredients, and food service businesses. The ACCC’s decision is crucial, as both companies acquire raw milk from dairy farmers in Victoria and Tasmania, raising initial competition concerns. With the regulatory hurdle cleared, Lactalis now has a distinct advantage in the bidding process.

The ACCC’s deputy chair, Mick Keogh, confirmed that a detailed review of the transaction was conducted. While some concerns were raised about the consolidation of two of the largest buyers of raw milk in Victoria and further consolidation in Tasmania, the ACCC determined the acquisition was “unlikely to result in a substantial lessening of competition.” The commission found that alternative buyers would continue to constrain Lactalis in key regions, ensuring market dynamics would not be substantially altered by the deal.