Lactalis Considers Fonterra Units, No Deal Finalized
PARIS (Reuters) - Lactalis, the world's largest dairy group, is interested in international investments but has not signed an agreement to buy parts of New Zealand-based dairy giant Fonterra, it said on Friday following reports it was considering an offer.
The French, privately owned company was among those considering bidding for units Fonterra is seeking to divest in a $2.37 billion deal, Reuters reported on Thursday.
Australia's competition watchdog said on Friday it had begun an informal review of an offer from Lactalis to buy New Zealand-based Fonterra’s businesses, even though Lactalis has yet to make a formal announcement.
Asked about the bid, Lactalis said no deal had been signed.
"We would envisage many interested parties would participate in the sale process. Several pre-emptive steps are standard ahead of any agreement being considered, and Lactalis has not signed an agreement," it said.
"Lactalis has successfully enhanced its product offering internationally through acquisitions," it said further, adding global development was core to its plans for growth and it was considering international investments, including in Australia.
Two sources told Reuters that a deal could value the businesses Fonterra is seeking to sell at around NZ$4 billion ($2.37 billion).
New Zealand-based Fonterra in November made public a plan to either sell the units or list them through an initial public offering so it could focus on its core activity of processing milk at home.
(Reporting by Geert de Clercq. Editing by Mark Potter and Barbara Lewis)
