Bega Cheese, an Australian dairy company, has indicated its intention to file an application with the Australia Competition and Consumer Commission (ACCC) seeking authorisation for its planned acquisition of Fonterra Oceania.
Bega Cheese believes that the prospective acquisition would greatly improve the company’s performance and efficiency, and it would also have substantial benefits for the broader dairy industry. The company argues that combining its resources with those of Fonterra Oceania would result in improved efficiencies and outcomes for Australian dairy farmers, customers, and consumers.
Bega Cheese is of the view that it is the most suitable acquirer of Fonterra’s Oceania businesses and is keenly interested in pursuing this opportunity. The company is hopeful of engaging in productive discussions with Fonterra Group on the sale of its Oceania businesses.
As Bega Cheese is an Australian business, it expects that the potential acquisition will not require the approval of the Foreign Investment Review Board (FIRB).
In November, Fonterra revealed its plans to divest by pursuing 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 believes that this divestment will allow it to concentrate its resources on the ingredients and foodservice businesses, thereby maximising value.
Fonterra’s consumer business includes the operations and marketing of a variety of brands, such as Mainland, Anchor, Kapiti, and Anlene.
Why is Bega Cheese planning to acquire Fonterra Oceania?
Bega Cheese believes that the acquisition of Fonterra Oceania would greatly improve its own business efficiencies and performance.
Who needs to approve the acquisition?
The Australia Competition and Consumer Commission (ACCC) needs to approve the acquisition.
What is Fonterra’s rationale behind its divestiture strategy?
Fonterra believes that by divesting, it will be able to concentrate its resources on the ingredients and foodservice businesses, thereby maximising value.
