Bega’s Bold Bid for Fonterra Gains Tattarang’s Support
Andrew Forrest backs local dairy ownership as Bega challenges global giants for Fonterra’s Australian operations
Andrew Forrest’s investment group, Tattarang, has publicly endorsed Bega’s bid to acquire Fonterra’s Australian assets, emphasizing the strategic value of keeping the business under domestic ownership. Tattarang, which owns 11.5% of Bega and also backs iconic Australian brands like RM Williams and Akubra, positioned Bega’s proposal as aligned with the interests of farmers, workers, and local communities. Fonterra’s decision to exit Australia has triggered a competitive bidding environment among major global players, including Meiji (Japan), Lactalis (France), and FrieslandCampina (Netherlands).
Fonterra’s Australian business—spanning consumer products, foodservice, and ingredients—includes facilities in Cobden, Stanhope, and Darnum (Victoria) and is expected to fetch over NZ$2 billion. Tattarang CEO John Hartman underscored the broad regional support for Bega’s bid, framing the company as a long-term industry steward deeply rooted in rural Australia. "Securing local ownership ensures long-term alignment with national stakeholders," Hartman said.
Despite its open interest, Bega has faced setbacks accessing Fonterra’s data room, a necessary step in any formal acquisition bid. According to David Williams of Kidder Williams, who is representing Bega, no other Australian company besides Bega has stepped forward with a credible offer. The delay has prompted regulatory engagement, with Bega now seeking clarity from the Australian Competition and Consumer Commission (ACCC) regarding its eligibility to proceed.
Legal and regulatory frameworks are now central to the unfolding deal. Under the Foreign Investment Review Board (FIRB) guidelines, the sale of rural assets must prioritize domestic buyers unless overridden by the Treasurer in the “national interest.” Past precedents loom large—most notably, Bega’s 2021 acquisition of Lion Dairy and Drinks after a $600 million offer from China’s Mengniu Dairy was blocked due to foreign investment concerns.
Whether the Treasurer, Jim Chalmers, will intervene remains uncertain, but Tattarang’s involvement has raised the bid’s profile considerably. The decision may ultimately come down to national policy priorities: whether to protect strategic food manufacturing under local ownership or allow global capital to dominate Australia’s dairy landscape. The industry—and the rural communities it supports—await the government’s next move.
