Bega Group spent A$2m pursuing Fonterra’s Mainland Group
Bega Group reported A$2m in merger-and-acquisition expenditure in its full-year results. The company said the costs were directly related to assessing and pursuing the divestment of Fonterra’s Mainland Group.
The competitive process ended with Lactalis acquiring the entire Mainland Group business for $4.2 billion. The transaction included negotiations over long-term rights to use the Bega brand for cheese and butter sold in Australia.
Bega and Fonterra had been involved in a legal dispute before the sale was completed. The case in the Supreme Court of New South Wales was settled after the agreement with Lactalis. The settlement contributed to the purchase price rising from an initial $3.8 billion to $4.2 billion.
Bega’s unsuccessful bid formed part of its established approach of pursuing growth through acquisitions. Earlier transactions included its A$460m purchase of Mondelez’s Australian and New Zealand grocery business, including Vegemite, in 2017. In 2020, Bega acquired Lion Dairy & Drinks for A$534m.
The Mainland pursuit was disclosed alongside a stronger operational performance for Bega. Revenue increased by 6.7% to A$3.7bn, while earnings before interest, tax, depreciation and amortisation rose by 22.2% to A$202m. Raw-milk intake increased by 7% during FY2026.
Bega’s bulk nutritionals and ingredients division recorded revenue of A$552m. Its EBITDA rose by 37.5% to A$53.2m, above the company’s full-year guidance range of A$30m to A$50m. Bega operates in the Australian milk market alongside Lactalis and Saputo.
