Fonterra is the latest company to confirm its interest in acquiring Australia's largest milk processor Murray Goulburn (MG).
The NZ dairy giant confirmed it had made an offer for MG after announcing its annual results on Monday, joining a number of other interested bidders including Chinese dairy processor Mongolia Yili Industrial Group Co.
MG's other suitors include Inner Mongolia Fuyuan Farming, a subsidiary of Mengniu Dairy, which is Yili’s rival in China, as well as The A2 Company, Saputo, Parmalat, and Bega Cheese, according to media reports.
The offers follow a recent call by Investment bank Deutsche for first round bids for the embattled processor, and last week MG confirmed that it has received a number of acquisition proposals, ranging from the sale of certain assets, to “whole of company transactions”.
“MG and its financial advisor Deutsche Bank AG are engaging with a number of parties to assess their proposals, including valuation. At this point it is too early to make any comment about valuation or implementation. MG notes there is no certainty that any transaction will eventuate,” the company said.
While local companies may face competition issues from the Australian Competition and Consumer Commission, acquisition by a Chinese party would require Foreign Investment Review Board (FIRB) approval.
Any bid would require 90 per cent approval from Murray Goulburn’s farmers, due to its co-operative structure.
