Dutch dairy cooperative FrieslandCampina has joined the bidding for Fonterra’s Australian consumer business through a consortium with Bega Group.
The duo will compete with French dairy giant Lactalis and Japanese food company Meiji Holdings in the auction, the Australian Financial Review reported, citing people with knowledge of the matter.
The three parties submitted their bids earlier this month, but another round of final bids could take place in the coming weeks.
New Zealand-based Fonterra announced its intention to divest its consumer and associated businesses last year. The subsidiary owns brands such as Mainland, Perfect Italiano, and Western Star, and holds the licence for Bega Cheese-branded products in Australia.
Bega revealed its interest in the deal last month when the company said it would seek clearance from the Australian Competition and Consumer Commission (ACCC).
The firm said it was the “natural acquirer” and that the deal would “significantly enhance outcomes” for the dairy industry as a whole.
Last week, Lactalis received a green light to proceed with the proposed acquisition after the regulator concluded it would not result in a substantial lessening of competition. The French company owns a range of brands such as Pauls, Vaalia, Oak, President and Lactalis Foodservice in Australia.
