Australia gives Lactalis the green light to acquire Fonterra assets

Australia’s competition authority has announced that it will not object to a potential bid by French dairy giant Lactalis to acquire Fonterra Co-Operative Group, a New Zealand-based business specialising in consumer goods, dairy ingredients and food services.

It is noted that Lactalis and Fonterra are major players in Victoria and Tasmania, purchasing large volumes of raw milk and producing a wide range of dairy products for domestic consumption.

The regulator said that in some regions of Victoria, alternative buyers of raw milk will continue to compete with Lactalis, while in Tasmania, the French firm’s limited presence will allow fair competition.

It is noted that the decision was made against the backdrop of Fonterra’s plans last year to sell assets or put them on the stock exchange through an initial public offering. The company recently confirmed that it continues “to conduct a bilateral process for the sale of investments, and no decisions have yet been made.”

Tags: Fonterra, Lactalis, Australia