September 28, 2007

New Zealand's Fonterra may buy Australia's Dairy Farmers

News is widespread that New Zealand-based dairy giant Fonterra may takeover Australian milk cooperative, Dairy Farmers, before it publicly lists next year.

Neither company will comment, but analysts say the two co-ops have been talking for some time, and that Fonterra is well advanced in developing an offer.

Australian Dairy Farmers president Allan Burgess says he hopes Australian producers will get a chance to have their say before any deal is considered.

Burgess says though big players like Fonterra, the biggest dairy company in the world, have already invested in Australia, dairy farmers or shareholders should also have the opportunity to know the transaction has everything that they want.