ACCC approves merger of dairy giants Lactalis and Fonterra

Australia Broadcast Center

10-07-2025

The Australian Competition and Consumer Commission (ACCC) has approved a merger between the country's two largest dairy processing companies, Lactalis and Fonterra.
The planned takeover of Fonterra's consumer, dairy ingredients and food service businesses by French group Lactalis would create a massive dairy company in Australia.
Both companies buy and process raw milk from dairy farmers in Victoria and Tasmania.
They also process and supply a range of dairy products across Australia.
ACCC deputy chair Mick Keogh said the commission looked closely at the planned takeover.
"It will combine two of the largest buyers of raw milk in Victoria and lead to some further consolidation in Tasmania," he said.
Mr Keogh acknowledged concerns about reduced competition if the merger went ahead, but said it was not expected to significantly change market dynamics.
The ACCC found that alternative buyers of raw milk would still constrain Lactalis in Gippsland, the Murray and western Victoria.
"While the industry in Tasmania is already concentrated, Lactalis has a limited presence and the acquisition would not substantially alter the market dynamics." Mr Keogh said.
The commission said the differing production focus of Fonterra and Lactalis meant there would be limited overlap in products.