Fonterra has reportedly withdrawn its plans for a solo bid for Australia’s Dairy Farmers but has been linked with a joint move for the business with National Foods.
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The New Zealand-based dairy giant has decided against bidding alone for Dairy Farmers, which put itself up for sale in April and is valued at around A$960m (US$914m).
According to the Reuters news agency, the Australian Competition and Consumer Commission announced Fonterra’s decision, which came as Dairy Farmers also revealed that Fonterra was in talks with National Foods over a joint bid.
National Foods has already said it plans to team up with Australian dairy firm Warrnambool Cheese and Butter Factory to bid for Dairy Farmers.
For its part, Warrnambool said yesterday (30 June) that it was unaware of any other joint plans between its bid partner and Fonterra.
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By GlobalData“The report of a new syndicate involving Warrnambool Cheese and Butter is not correct and Warrnambool Cheese and Butter has no knowledge of any such association,” the company said.
One other consortium definitely interested in bidding for Dairy Farmers is that between Italy-based group Parmalat and local co-operative Murray Goulburn.
If successful, Parmalat and Murray Goulburn have indicated that they would split Dairy Farmers, owner of brands including its namesake milk and Coon cheese, in two.
