Lactalis sparks ACCC review over Fonterra deal
French dairy giant eyes $4B stake in NZ rival’s global units
2 May 2025
2 minute read
By: Australia's antitrust regulator on Friday began an informal review of Lactalis' proposed bid for Fonterra's assets on the block, even though the French dairy giant said it had not signed any deal with the New Zealand-based firm, reported Reuters.
A spokesperson for the regulator said it had received an application from Lactalis for informal merger clearance on its proposed purchase of Fonterra’s consumer business globally, and Fonterra’s dairy ingredients and food services businesses in Australia.
Fonterra said in April that some potential buyers were at a stage where they could seek regulatory approvals — a standard step ahead of any deal.
In November, the New Zealand-based company announced plans to sell or list the units to sharpen its focus on core milk processing operations. A deal for the businesses Fonterra is divesting could be valued at around NZ$4 billion ($2.37 billion).
The Australian Competition and Consumer Commission's (ACCC) review process comes after Reuters on Thursday reported that several firms - including Japan's Meiji and France's Lactalis - were exploring bidding for Fonterra's global consumer business, Fonterra Oceania and Fonterra Sri Lanka units.
The informal review process is voluntary, and lets parties seek the ACCC’s view on whether a merger is likely to substantially lessen competition.
Lactalis, the world's largest dairy group, said on Friday it is interested in international investments but had not signed any agreement to buy the units Fonterra is planning to sell.
"As the leading dairy group, global development is core to our growth plans, and we are naturally considering investments in Australia and internationally," the group said in an emailed response to Reuters.
Fonterra declined to comment further, referring to its April announcement.
Fonterra - known for household brands like Western Star butter, Mainland cheese, and Perfect Italiano - operates eight manufacturing sites across Victoria and Tasmania.
Fonterra Oceania and Fonterra Sri Lanka supply milk to be turned into dairy products.
The operations being considered for a possible divestment accounted for about 19% of Fonterra's operating earnings in the first half of fiscal 2024, it said.
