Bega Group seeks to acquire Fonterra's Oceania business

Australian food and dairy company Bega Group is pursuing an informal merger clearance from the Australian Competition and Consumer Commission (ACCC) for a potential acquisition of Fonterra’s Oceania business unit. This unit includes operations in New Zealand and Australia and was put on the market last year, as part of Fonterra’s strategy to exit its consumer-facing operations and concentrate on dairy ingredients and foodservice channels.

Bega Group believes an acquisition of these assets would enhance outcomes for both the company and the wider dairy industry in Australia. However, Bega Group will be competing with other potential buyers, including French dairy giant Lactalis, which has already submitted a proposal to acquire Fonterra’s assets.

Other speculated bidders for Fonterra’s assets include Canada’s Saputo, Japan’s Meiji Holding Co., and the US investment company Warburg Pincus, although these have not been confirmed. Meanwhile, Bega Group intends to work closely with Fonterra Group on this potential acquisition.

Bega Group, headquartered in Bega, New South Wales, is known for its popular brands such as Vegemite and Bega Peanut Butter. The company reported a revenue increase of 3% to A$1.8 billion and a 44% rise in normalised EBITDA to A$110.3 million for the first half, with net profit after tax growing to A$35.9 million from A$13.3 million a year earlier.