- Australian regulator receives application from French giant Lactalis for an informal merger clearance
- Fonterra remains tight-lipped
- Australia’s Bega Cheese openly declares interest
The contenders for Fonterra’s consumer operations are becoming clearer, with leading dairy companies looking to get a slice of its prized assets.
Lactalis – The world’s biggest dairy company – is interested, with Australia’s Bega Cheese, backed by billionaire Andrew Forrest, also in the mix.
Australia’s competition regulator the Australian Competition and Consumer Commission (ACCC) said it has received an application from France’s Lactalis for an informal merger clearance to buy Fonterra’s businesses.
“The ACCC’s review will consider the competitive effect of the proposed acquisition in Australia,” it said.
In a statement, Lactalis told RNZ no deal has been done with Fonterra.
The sale of the consumer business – which includes Anchor, Kāpiti and Mainland – has been in the works for a year, and the co-op has been on the road for the past month informing potential bidders.
It is tight-lipped about who might be interested, repeating earlier comments that potential buyers may pre-emptively seek regulatory approvals.
Australian dairy company Bega Cheese has openly expressed its interest, saying it is a natural buyer for the Fonterra businesses.
But it is locked in a tussle with Fonterra about who has control of Bega Cheese trademarks if a sale goes through.
Last week, the Supreme Court of New South Wales dismissed a case filed by Fonterra over trademark licensing agreements with Bega Cheese, saying it did not have jurisdiction to make a declaration on a deal which did not exist.
Fonterra said the decision did not change its plan to sell the consumer business, which could be sold as one entity, as individual businesses, or be publicly listed.
The co-op said it received “meaningful buyer interest” in the businesses in line for sale, and few potential buyers have publicly declared interest.
Other major dairy companies that may be interested include Swiss multinational Nestle, and France’s Danone.
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