Overview

• The ACCC granted approval for French dairy giant Lactalis to take over Fonterra’s Australian consumer, dairy ingredients and food service operations.
• The acquisition brings together Australia’s two largest raw milk processors in Victoria and expands consolidation of milk procurement in Tasmania.
• ACCC deputy chair Mick Keogh said the commission determined that the acquisition is unlikely to substantially lessen competition.
• The regulator found that alternative buyers in regions such as Gippsland, the Murray and western Victoria would continue to constrain Lactalis’s market power.
• Regulators highlighted that limited overlap in product lines, stemming from the companies’ distinct production focuses, further mitigates competition concerns.