Australia gives Lactalis the go-ahead to acquire Fonterra assets

Australia’s competition authority has announced that it will not object to a potential bid by French dairy giant Lactalis to acquire Fonterra Co-Operative Group, a New Zealand-based business specialising in consumer goods, dairy ingredients, and food services. Lactalis and Fonterra are both significant players in the regions of Victoria and Tasmania, where they purchase large volumes of raw milk and produce a vast array of dairy products for domestic consumption. The regulator emphasized that in certain areas of Victoria, alternative buyers of raw milk will continue to compete with Lactalis, ensuring a competitive market, while in Tasmania, where the French company has a limited presence, competition is expected to remain fair. This decision comes in the context of Fonterra’s intentions announced last year to either sell its assets or consider offering its shares on the stock exchange through an initial public offering. Fonterra confirmed its ongoing efforts in "conducting a bilateral process for the sale of investments," with no decisions finalized yet.