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Bega seeks clearance to buy Fonterra assets

Anchor milk products
Bega Cheese plans to acquire Fonterra Oceania. (Source: Anchor)

Bega Cheese is planning to lodge an application with the Australia Competition and Consumer Commission (ACCC) for clearance of its proposed acquisition of Fonterra Oceania.

Bega said the deal would “significantly enhance outcomes” for the company and the dairy industry as a whole, adding that the combined assets would lead to greater efficiencies and enhanced outcomes for Australian farmers, customers and consumers.

“Bega Group hopes to work constructively with Fonterra Group on the sale of its Oceania businesses of which Bega Group is the natural acquirer and in which it remains very interested,” the company added.

The firm noted that it does not require Foreign Investment Review Board (FIRB) approval for the potential acquisition, given that it is an Australian business.

Last November, Fonterra announced it was pursuing both a trade sale and an initial public offering of its global consumer business, as well as its integrated businesses Fonterra Oceania and Fonterra Sri Lanka.

The company said the divestment would allow it to focus on ingredients and foodservice businesses and maximise value.

Fonterra’s consumer business covers the operations and marketing of brands such as Mainland, Anchor, Kapiti and Anlene. 

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