Australia-based food and dairy company Bega Group, headquartered in Bega, New South Wales, announced its intention to seek informal merger clearance from the Australian Competition and Consumer Commission (ACCC) for a potential acquisition of Fonterra’s Oceania business. The acquisition, if successful, would expand Bega’s regional influence across Australia and New Zealand and aligns with Fonterra’s strategy to divest its consumer businesses and focus on dairy ingredients and foodservice.
Bega Group, a leading Australian food and dairy company headquartered in Bega, New South Wales, has initiated informal merger clearance proceedings with the Australian Competition and Consumer Commission (ACCC) as it pursues the acquisition of Fonterra’s Oceania business unit.
The Oceania division, which includes Fonterra’s operations in both Australia and New Zealand, was put up for sale last year as part of the New Zealand-based dairy giant’s strategy to exit consumer-facing product lines. Fonterra is realigning its global focus toward dairy ingredients and foodservice—a move that has opened the door to a high-stakes bidding contest.
Bega Group believes that acquiring the Oceania business would significantly benefit its existing portfolio and strengthen the broader dairy ecosystem across the region. The company, famous for its household brands like Vegemite and Bega Peanut Butter, reported robust financials in the first half, with revenue climbing to A$1.8 billion and a 44% increase in normalized EBITDA to A$110.3 million. Net profit after tax surged to A$35.9 million, up from A$13.3 million the previous year.
However, Bega is not alone in the race. French multinational Lactalis has already submitted a proposal, while other potential bidders include Canada’s Saputo, Japan’s Meiji Holdings Co., and US investment firm Warburg Pincus, although their interests remain unconfirmed.
Bega Group has stated its intent to collaborate with Fonterra throughout the process, underscoring a shared vision of optimizing dairy capabilities in Oceania. If the acquisition proceeds, it could mark a significant consolidation in the region’s dairy sector and a transformative step for Bega’s strategic growth.
