Bega Group has joined forces with global dairy giant FrieslandCampina in its bid to acquire Fonterra Co-operative Group’s Mainland business. There are two other players in the ring for Mainland – Japanese food company Meiji Holdings Co and French dairy giant Lactalis.
Fonterra announced the sale of its global Consumer business, Fonterra Oceania, and Fonterra Sri-Lanka in May last year. The businesses have been rebranded Mainland Group, which the co-op estimated to be worth around $4 billion.
Lactalis has already secured confirmation from the ACCC it would not oppose the acquisition if its bid was successful.
Bega applied to the ACCC for informal clearance to bid in late June.
Japanese food and pharmaceutical company, Meiji Group, has operations in Australia and New Zealand. Medreich Australia is a pharmaceutical company, Meiji New Zealand is listed as a food manufacturing and export business, and holding company, Medreich New Zealand.
In Japan it accounts for just over 17 per cent of the milk market and has dairy businesses in China and Thailand.
In 2020, Meiji acquired a 25 per cent stake in AustAsia Investment Holdings for US$254.4 million. AustAsia operates dairy farms in China. Japfa is the parent company of AustAsia and is listed on the Singapore Stock Exchange.
Meiji Group said it was looking to improve its long-term corporate value through growth in overseas markets. Its Meiji Group 2026 Vision plan identified China as a priority.
Lactalis’ Australian business, Lactalis Australia’s brands include Pauls milk, Vaalia and Ski yoghurt, Ice Break, Oak, and Breaka flavoured milks, and Lemnos, President, and Galbani cheeses.
It is #15 of the 2024 Australia’s Top 100 Food & Drink Companies report.
Last year, Lactalis announced the closure of its factory in Echuca, Victoria and consolidation of operations at its Bendigo site, where the company is investing $85 million.
Lactalis CEO, Mal Carseldine, said the Bendigo factory was chosen as its regional hub due to its milk processing capability, operating costs, and site layout. The investment will add jobs, a new production line, better utilisation of existing production lines, more capacity for yoghurt and custard, updated technology and automation, and a greater focus on the environment and sustainability.
