Fonterra and National Foods have been in discussion about a potential joint bid for Australia’s Dairy Farmers, reports said today (27 June).
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The Australian Financial Review said that Dairy Farmers had consented to allow Fonterra to enter discussions with National Foods and its venture partner Warrnambool Cheese and Butter Ltd, releasing them from a confidentiality clause imposed on bidders.
An unnamed source, meanwhile, confirmed the talks to news agency Reuters. “They have had some discussions,” the source was reported saying.
Dairy Farmers was put up for sale in April and Fonterra and National Foods are amongst the bidders for the business.
Earlier this month Australian dairy firm Warrnambool Cheese and Butter Factory joined the bid by National Foods. National Foods, which is owned by Japanese conglomerate Kirin Holdings, had already sought regulatory clearance to buy Dairy Farmers.
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By GlobalDataThis promises to be a fierce battle for Dairy Farmers, which has been valued at between A$800m (US$769m) and A$1bn.
Since putting itself up for sale, Dairy Farmers has also attracted firm interest from New Zealand dairy giant Fonterra and a proposed joint bid from Parmalat and local co-operative Murray Goulburn.
