Australia’s competition body has issued an “under consideration” notice. Lactalis says it has “not signed an agreement”.
Australia’s competition authority has flagged interest by dairy giant Lactalis to acquire Fonterra’s up-for-sale consumer-facing dairy assets.
The Australian Competition and Consumer Commission (ACCC) issued an “under consideration” notice today (2 May) relating to the proposal by France-headquartered Lactalis.
ACCC has invited feedback on the proposal from “interested parties” by 16 May, stating in a statement that Lactalis “proposes to acquire” Fonterra’s global consumer business and the cooperative’s dairy and ingredients foodservice businesses in Australia.
New Zealand-headquartered Fonterra first announced an exit plan from its consumer-facing division in May last year, when it said the business would explore a full or partial disposal of the assets.
The interest from Lactalis has emerged a day after Reuters reported, quoting unnamed sources, that the French business was among a group of companies ‘considering’ bidding for the Fonterra assets.
Canada-based Saputo, Japan’s Meiji Holding Co. and US investment firm Warburg Pincus were also reportedly part of the group.
Warburg Pincus declined to comment on the speculation yesterday (1 May) when approached by Just Food, while Saputo had not responded. This publication was unable to reach Meiji for comment.
Fonterra had also not responded to Just Food’s request made yesterday to ascertain the status of the disposal proceedings or to comment on any parties from which it may have received interest.
Lactalis responds
Lactalis, meanwhile, has responded today. It was a public holiday in France yesterday, like much of Europe for Labour Day.
Initially, it said: “As the world’s leading dairy group, Lactalis is looking at all the opportunities that present themselves,” confirming with Just Food via a spokesperson that the dairy major currently has “no activities in New Zealand, Oceania or Sri Lanka”.
Lactalis then issued a follow-on statement, acknowledging it was in response to the ACCC’s filing.
“As the leading dairy group, global development is core to our growth plans, and we are naturally considering investments in Australia and internationally,” Lactalis said.
“We would envisage many interested parties would participate in the sale process. Several pre-emptive steps are standard ahead of any agreement being considered, and Lactalis have not signed an agreement.”
According to the ACCC, Lactalis has around 500 milk suppliers across New South Wales, Queensland, South Australia, Tasmania, Victoria and Western Australia. It processes milk into cheeses, spreads and yogurts, and also processes dairy ingredients such as milk powders.
The ACCC added that Lactalis and Fonterra “overlap in various parts of the dairy supply chain”, hence the request for comments by 16 May.
Those areas were listed as the purchase of raw milk, mainly in Victoria and Tasmania. And processing into finished dairy products like cheese, spreads and yogurts, as well as ingredients such as milk fats, whey powders and lactose.
There could also be conflict in the supply of dairy products and ingredients to retailers and foodservice customers, the ACCC suggested.
Fonterra’s global consumer-facing business features the brands Anchor butter, Mammoth flavoured milk drinks and De Winkel yogurts. Others include Mainland, Kāpiti, Anlene, Anmum, Fernleaf, Western Star and Perfect Italiano.
Oceania comprises Fonterra’s operations in New Zealand and Australia, previously merged as one business unit, serving the retail, out-of-home and B2B channels. The Sri Lanka business also supplies those same customers.
Two of the unnamed sources referenced by Reuters yesterday said the Fonterra assets up for disposal could fetch around NZ$4bn ($2.3bn).
In November, Fonterra said the assets “have received meaningful buyer interest” having noted a few months earlier in May that the consumer business used around 15% of the co-op’s milk solids and accounted for about 19% of group operating earnings in the first half of its 2024 fiscal year.
Interim first-half results issued in March of last year, showed Fonterra’s group profit after tax rose 23% to NZ$674m, while EBIT was up 14% at NZ$986m.
Meanwhile, Lactalis issued its once-a-year financial update in April, noting the group’s sales had exceeded €30bn ($34bn) for the first time in 2024.
Revenue rose 2.8% to €30.3bn, slowing from the 4.3% growth in 2023. Operating income increased 4.3%, although Lactalis did not provide an end figure, while net income dipped 19% to €359m.
Lactalis has also been active in M&A. Only this week, it emerged that the dairy giant had expanded its presence in Portugal with the acquisition of local cheese maker Queijos Tavares.
Its latest deal in Portugal follows the acquisition of Sequeira & Sequeira in March last year.
Earlier in 2025, Lactalis announced the purchase of Uruguay-based dairy company Granja Pocha. It has also expanded in the US as Lactalis acquired the Yoplait yogurt business in the country from food heavyweight General Mills in the back half of last year.
In another transaction last year, Lactalis acquired Nestlé’s Cremora creamers business in South Africa.
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇺🇸 eDairy News INGLÊS: https://whatsapp.com/channel/0029VaKsjzGDTkJyIN6hcP1K
