Bega Cheese Pursues Fonterra Oceania Acquisition
Deal News | Jun 16, 2025 | EIN
Australia's Bega Cheese has announced its intention to seek informal regulatory approval for the acquisition of Fonterra's Oceania business. Fonterra, based in New Zealand, is concurrently exploring a dual-track divestment strategy as it aims to sell its global consumer and integrated businesses, including operations in Oceania and Sri Lanka. The divestment is part of Fonterra's strategy to concentrate on core milk processing operations and is potentially valued at around NZ$4 billion. Other potential bidders include French dairy giant Lactalis, Japan's Meiji, and Canada's Saputo. The sale encompasses Fonterra's entire dairy supply chain in these regions. As of May, the Australian Competition and Consumer Commission (ACCC) is conducting an informal review of Lactalis' proposed bid.
Sectors
- Dairy Industry
- Mergers and Acquisitions
Geography
- Australia – Bega Cheese, one of the main companies involved, is based in Australia.
- New Zealand – Fonterra, the target company, is based in New Zealand.
- Sri Lanka – Part of Fonterra's divestment includes its Sri Lankan operations.
Industry
- Dairy Industry – The article discusses the potential acquisition within the dairy sector, involving companies that process and sell dairy products.
- Mergers and Acquisitions – The article involves a potential acquisition of Fonterra's Oceania business by Bega Cheese and possibly other bidders in a divestment process.
Financials
- NZ$4 billion – The potential valuation of Fonterra's divestment of its Oceania and Sri Lanka units.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Bega Cheese | Bidding Company | Company | An Australian company aiming to acquire Fonterra's Oceania business. |
| Fonterra | Target Company | Company | A New Zealand-based dairy company planning to divest its consumer and integrated businesses, including Oceania. |
| Lactalis | Potential Bidding Company | Company | A French dairy giant potentially interested in bidding for Fonterra's consumer businesses. |
| Meiji | Potential Bidding Company | Company | A Japanese company expected to bid for Fonterra's global consumer businesses. |
| Saputo | Potential Bidding Company | Company | A Canadian company expected to bid for Fonterra's consumer businesses. |
| Australian Competition and Consumer Commission (ACCC) | Regulatory Body | Government | The regulatory body conducting an informal review of the potential merger. |