Bega Group Eyes Fonterra's Oceania Business Assets
Sourse: dairynews.today
Australian food and dairy company Bega Group plans to acquire Fonterra's Oceania business unit, seeking informal merger clearance.
Australian food and dairy company Bega Group intends to seek "informal merger clearance" from the country’s competition watchdog for a "potential" acquisition of Fonterra’s Oceania business unit. In a filing with the Australian Securities Exchange on June 16, Bega announced its plans to "lodge an application" with the Australian Competition and Consumer Commission (ACCC) shortly.
The acquisition would include Fonterra's operations in Oceania, covering Australia, New Zealand, and Sri Lanka. Fonterra aims to dispose of these assets to focus on dairy ingredients and foodservice channels, considering options like a complete sale, partial sale, or IPO. Bega believes that acquiring these assets will enhance efficiencies and outcomes for Australian farmers, consumers, and the company's portfolio, which includes Vegemite spreads and Dairy Farmers milk. The competition includes Lactalis from France and potentially Saputo from Canada, among others. In the recent half-year results, Bega reported a 3% increase in revenue to A$1.8bn and a 44% rise in normalized EBITDA to A$110.3m, with net profit after tax surging to A$35.9m.
The acquisition would include Fonterra's operations in Oceania, covering Australia, New Zealand, and Sri Lanka. Fonterra aims to dispose of these assets to focus on dairy ingredients and foodservice channels, considering options like a complete sale, partial sale, or IPO. Bega believes that acquiring these assets will enhance efficiencies and outcomes for Australian farmers, consumers, and the company's portfolio, which includes Vegemite spreads and Dairy Farmers milk. The competition includes Lactalis from France and potentially Saputo from Canada, among others. In the recent half-year results, Bega reported a 3% increase in revenue to A$1.8bn and a 44% rise in normalized EBITDA to A$110.3m, with net profit after tax surging to A$35.9m.
