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ACCC Scrutinizes Bega’s Bid for Fonterra Assets

Australia 06.08.2025
Sourse: dairynews.today
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The ACCC is assessing Bega Cheese's acquisition proposal for parts of Fonterra's consumer business, focusing on potential competition issues within the dairy industry.
ACCC Scrutinizes Bega’s Bid for Fonterra Assets
Source: company

Australia’s competition watchdog, the Australian Competition and Consumer Commission (ACCC), has initiated a thorough review of Bega Cheese Limited’s proposal to acquire several consumer and dairy ingredient businesses from the Fonterra Co-operative Group. This acquisition forms part of Fonterra’s strategy to divest and simplify its operations, particularly across Oceania and Australia.

The ACCC's examination will look into whether this merger might significantly reduce competition in various segments of the dairy supply chain. Given that both Bega Cheese and Fonterra are major purchasers of raw milk from Australian dairy farmers, there are concerns regarding potential changes in competitive dynamics that might influence the milk supply prices.

The ACCC is also scrutinizing the potential impact on milk processing, production, and the supply chain for finished products. Industry stakeholders have a submission deadline of August 15, 2025, and the ACCC aims to release its findings by September 25, 2025.

This review underscores the intricate balance between corporate strategy, regulatory oversight, and dairy economics, emphasizing the vital role of competition authorities in preserving fair market practices.


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