ACCC clears Lactalis' proposed acquisition of Fonterra consumer assets
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The news: Dairy group Fonterra has moved a step closer to divesting its global consumer businesses after the competition regulator said it will not block a proposed sale of the assets to French multinational Lactalis.
The context: The Australian Competition and Consumer Commission (ACCC) said the proposed acquisition, which would combine the two largest buyers of raw milk in Victoria, is unlikely to result in a substantial lessening of competition.
Lactalis and Fonterra both currently acquire raw milk from dairy farmers in Victoria and Tasmania, as well as processing and supplying a range of dairy products across Australia.
New Zealand-based Fonterra, which confirmed plans to divest its consumer-facing businesses late last year, has not yet announced a formal offer from Lactalis.
Fonterra delisted from the ASX in February to reduce costs and complexity but remains on the New Zealand Stock Exchange.
France-based Lactalis owns several brands in Australia, including Pauls, Vaalia, Oak, Président and Lactalis Foodservice. Fonterra owns consumer brands such as Western Star, Mainland and Perfect Italiano, and produces certain Bega Cheese products under licence.
What they said: “While we acknowledge the concerns raised by some representative bodies, after careful consideration we have determined that the acquisition is unlikely to result in a substantial lessening of competition,” ACCC deputy chair Mick Keogh said.
The source: ACCC
