ACCC Silence on Bega: Is Fonterra’s Aussie Sale a Done Deal

The proposed acquisition of Fonterra Oceania’s assets remains a contentious topic in the international dairy sector, especially as Australia’s Bega Cheese faces hurdles during its acquisition attempt. Despite showing keen interest in acquiring the ‘Mainland Group’ spin-off, the Australian Competition and Consumer Commission (ACCC) has not yet formally begun its informal review of Bega’s application, in contrast to its previous approval given to Lactalis.

Bega Cheese argues that despite its attempt to apply for informal merger clearance in mid-June, ACCC's process has been sluggish. Concerns rise regarding the delay in ACCC's review to further clarify issues from Bega, even though Bega, a distinctly Australian-owned company, bypasses the need for Foreign Investment Review Board (FIRB) approval.

Bega’s chief executive, John Hartman, emphasizes the vital role this acquisition would play in enhancing both the company’s outcomes and the larger Australian dairy industry. He stressed the importance of local ownership, which resonates with the company’s historical commitment to regional communities, dairy farmers, and consumers.

Meanwhile, Fonterra’s divestment process remains confidential and competitive as they aim to maximize value for farmer shareholders. This strategic move underscores the evolving landscape of dairy economics and agribusiness mergers.