Tattarang, the investment firm owned by Australian billionaire Andrew Forrest, has thrown its weight behind Bega Cheese Limited in its attempt to acquire Fonterra’s Australian operations. The move underscores a nationalistic push to retain strategic food manufacturing under local control amid growing global interest.
In a significant development for Australia’s dairy sector, Tattarang, the private investment group controlled by mining magnate Andrew Forrest, has publicly endorsed Bega Cheese Limited in its bid to acquire the Australian operations of New Zealand-based dairy cooperative Fonterra.
Fonterra’s exit from the Australian market has sparked a global bidding war, with foreign players including Japan’s Meiji, France’s Lactalis, and the Netherlands’ FrieslandCampina all showing interest. The business on offer includes major dairy processing sites in Cobden, Stanhope, and Darnum (all located in Victoria), with a valuation estimated above NZD 2 billion.
Tattarang, which owns 11.5% of Bega and supports iconic Australian brands such as RM Williams and Akubra, has cited national interest and rural community support as reasons for backing Bega’s offer. CEO John Hartman highlighted that Bega’s deep regional roots and long-term stewardship made it the most aligned candidate to carry forward the operations. “Securing local ownership ensures long-term alignment with national stakeholders,” Hartman said.
Despite its ambitions, Bega has encountered difficulties in accessing Fonterra’s data room—a required step in formalizing any acquisition proposal. According to David Williams of Kidder Williams, Bega’s investment advisor, no other Australian company has stepped forward with a viable bid, prompting concerns about transparency and fairness in the process.
The issue has drawn attention from the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB). Under FIRB guidelines, priority is given to domestic buyers when rural assets are sold—unless overruled by the Treasurer in the national interest.
Precedents from 2021 also cast a long shadow—Bega’s successful acquisition of Lion Dairy and Drinks came after a $600 million offer from China’s Mengniu Dairy was blocked due to foreign investment concerns. With history echoing, the current deal could once again test Australia’s appetite for protecting food sovereignty.
The final decision now rests with Treasurer Jim Chalmers, whose stance may shape the future of Australian dairy ownership amid increasing globalization of the sector. As rural stakeholders and industry leaders await clarity, Tattarang’s support has amplified the national focus on this high-stakes acquisition battle.
