Latest news with #Lactalis
RNZ News
6 days ago
- Business
- RNZ News
Australian regulator not opposed to Lactalis buying Fonterra's Mainland Group
File image. Photo: RNZ / Cole Eastham-Farrelly Australia's competition regulator will not oppose a move by French dairy giant Lactalis to acquire Fonterra's consumer, dairy ingredients and food services businesses. Lactalis lodged an informal merger clearance application with the Australian Competition and Consumer Commission (ACCC) earlier this year. ACCC deputy chair Mick Keogh said it reviewed the potential transaction "very closely" as it would combine two of the biggest buyers of raw milk in Victoria, and may lead to further consolidation in Tasmania. "While we acknowledge the concerns raised by some representative bodies, after careful consideration we have determined that the acquisition is unlikely to result in a substantial lessening of competition," he said. The ACCC said alternative buyers of raw milk would be found in Victoria. "We found that while the industry in Tasmania is already concentrated, Lactalis has a limited presence and the acquisition would not substantially alter the market dynamics. If the acquisition proceeded, Lactalis would continue to be constrained by Saputo and, to a lesser extent, Mondelez," Keogh said. The ACCC also said a deal was unlikely to substantially lessen competition in wholesale dairy supply, such as drinking milk, cream, cheese, spreads and ingredients like milk powder. Australia's Bega Cheese - backed by billionaire Andrew Forrest - has also made contact with the ACCC over a potential deal. Keogh said the ACCC has not received contact from any other potential bidders. Forsyth Barr senior analyst Matt Montgomerie said Lactalis appeared to be the front-runner for Mainland Group, but the ACCC announcement was not an indication of whether Fonterra would accept Lactalis' bid. "News flow from other interested parties rumoured over recent months (Meiji, American private equity, Saputo and Bega) has been quiet," Montgomerie said.
AU Financial Review
6 days ago
- Business
- AU Financial Review
Lactalis gets pre-emptive ACCC green light for Fonterra spin-off sale
French dairy giant Lactalis has been given the all-clear to bid for Fonterra's sprawling Australian food and consumer business after pre-emptively applying for approval from the competition regulator. The sale of Fonterra's consumer products business will shake up the country's agricultural industry, given many farmers already sell milk to the company and to its potential suitors like Lactalis.
ABC News
6 days ago
- Business
- ABC News
ACCC approves merger of dairy giants Lactalis and Fonterra
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.
Yahoo
6 days ago
- Business
- Yahoo
Australia's competition watchdog to not oppose Lactalis' bid for Fonterra assets
(Reuters) -Australia's competition watchdog said on Thursday that it will not oppose Lactalis' proposed acquisition of New Zealand-based Fonterra Co-Operative Group's consumer, dairy ingredients and food service businesses. The Australian Competition and Consumer Commission's (ACCC) Deputy Chair Mick Keogh said it is unlikely that the acquisition will result in a "substantial lessening of competition." "Because Fonterra and Lactalis have differing end-product mixes, they often seek to acquire milk from farmers with different production profiles. Accordingly, we found that they are not likely to be each other's closest competitors," Keogh said. The ACCC's informal review of the French dairy group's unannounced bid for Fonterra assets in early May came after Reuters reported that companies including Japan's Meiji, Lactalis and Canada's Saputo were considering bids for Fonterra units up for divestment. Following the Reuters report, Lactalis said it has not signed any agreement regarding the potential acquisition of parts of Fonterra. Lactalis and Fonterra did not immediately respond to a Reuters request for comment. Sign in to access your portfolio
Yahoo
07-07-2025
- Business
- Yahoo
Lactalis boosts staff numbers in US with two factory investments
Lactalis is creating around 50 US jobs as the France-based dairy major invests in two factories in New York state. The world's largest dairy manufacturer is ploughing about $75m into its facilities in Walton and Buffalo to expand production of mozzarella and sour cream. Lactalis' projects will be supported by tax credits from the local Empire State Development fund - $750,000 for the Walton site and $550,000 for the Buffalo plant. According to a statement from New York State Governor Kathy Hochul and Esteve Torrens, the CEO of Lactalis's business in the US, the investment will ensure the retention of 800 full-time jobs across the two factories. The projects are expected to be completed in 2027. The facilities in Walton and Buffalo process 800 million pounds of raw milk annually from 236 local dairy farmers. Torrens said: 'Lactalis has two plants in New York state that are key to our growing business in the US. Our Buffalo plant is home to a significant ricotta and mozzarella production under the Galbani brand. Our Walton plant continues a rich tradition since 1882 of producing Breakstone's Sour Cream and is essential to strengthening our cottage cheese business in a rapidly growing category.' The Buffalo plant produces mozzarella, ricotta and provolone-style cheese under Lactalis' Galbani brand, and also whey powder. The investment for the site is part of the $123m committed by the company for Buffalo from 2020 to 2027. In this round, $60m has been earmarked for the installation of six new vats, the addition of a cheese belt and a robotic palletiser. Lactalis said 20 of the new jobs will be created at the Walton sour cream and cottage cheese plant as the factory undergoes a $15m modernisation project to expand production. It will include new fillers, air filters, laboratory equipment, new roofing and boiler upgrades. 'By investing in the Lactalis USA facilities and assisting with improvements, New York is retaining hundreds of jobs and adding new jobs, as well as helping to support the region's dairy farmers,' Hochul said. 'New York will continue to work with businesses in the agri-food sectors as they expand and grow to ensure good-paying jobs remain in our communities.' The Walton and Buffalo facilities are among the 11 manufacturing plants and corporate offices Lactalis has in the US, according to the statement. It also has sites in Illinois, New Hampshire, California, Wisconsin, Idaho, Vermont and Arizona. Lactalis' factory in Tulare in California was the recipient of a $55m investment last year for its Président brand. Meanwhile, Lactalis entered an agreement to acquire the US yogurt business of food peer General Mills in 2024. Further afield, the French dairy major is bidding for the assets of Fonterra's consumer business and the cooperative's dairy and ingredients foodservice businesses in Australia. The news emerged in May soon after reports surfaced that Canadian dairy giant Saputo, along with Japan's Meiji Holding Co. and US investment firm Warburg Pincus, were also among interested parties. "Lactalis boosts staff numbers in US with two factory investments" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
