May 14, 2008

Fonterra makes move to acquire Australia's Dairy Farmers

New Zealand's biggest company, Fonterra, is seeking regulatory clearance of its bid for big Australian dairy cooperative, Sydney-based Dairy Farmers.

Fonterra has asked the Australian Competition and Consumer Commission (ACCC) to indicate whether it has any concerns on its bid to acquire Dairy Farmers.

A former Fonterra takeover target in Australia, National Foods is also making a bid, reported to be around AUS$900 million.

Dairy Farmers chief executive Rob Gordon has asked interested bidders to seek the regulatory clearances, including ACCC reviews, before it formally assesses proposals.

Dairy Farmers, owned by 2000 farmer shareholders, is expected to also be targeted by Italian dairy company Parmalat, and another Australian cooperative Murray Goulburn.